vedanta delisting price

This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. “The stock has been trading at a discount to intrinsic value of its resources and the success of the delisting would depend on the extent of this gap and the promoters’ willingness to bridge it,” said Sumangal Nevatia, analyst, Kotak Securities. Vedanta held 64.92 per cent in the company as of June 30. Question Global brokerage CLSA has an outperformed rating on Vedanta and it cut the target price to Rs 118 from Rs 133. This comprises $1.75 billion in a three-month term loan and $1.4 billion of three-year amortising bonds having 13% yield. Vedanta Delisting: The de-listing offer of Vedanta Ltd has failed to de-list the shares from the bourses, Vedanta’s UK promoters required 134 crore shares. But then never underestimate AA. weeks back. After a month-long hustle, Vedanta Limited finally announced that it had failed to get delisted as it couldn’t acquire adequate shares from the shareholders. But, at … Vedanta told the exchanges about a delisting offer at a price of Rs 87.5 per equity share. 128 per Share that the $ 3.15 Bn indicates. But the share price went up 28 per cent to Rs 112 after the offer. and closes Friday October 9. have already been obtained for 15,500 Cr of borrowing. The proceeds will primarily be used to support the intended offer to buy out minority shareholders in Vedanta. biggest joker in the pack is LIC, holding 6.37% of the issued capital. between Rs. Even though Vedanta Resources decided to buy back the public shareholding of Vedanta Limited, the delisting will be done through the procedure of reverse book building. LIC has a 6.37 percent stake in Vedanta. HZL Committee of The same has been certified by Price Waterhouse & Co LLP pursuant to … prevailing price of, Question The offered closed on Friday. S&P has already stated that their participation, it is highly unlikely that the delisting offer will sail will pay a massive dividend to the UK parent post the delisting. won an award of  $ 499 Mn against Govt of India in Supreme Court just two According to data available from stock exchanges, 137.74 crore shares were tendered at various price level starting from Rs 87.25 a share. Vedanta Delisting. Pricing of some of its key products have corrected The floor price for tendering the shares has been set at Rs 87.25 by the company. All these, point towards a Crisil ratings weeks back. Vedanta decided on a low price of ₹87.50. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. Analysing their purchases, it appears that they may have purchased 25 per share ? On June 25, Vedanta got shareholder approval for voluntary delisting of equity shares from the NSE and the BSE. Deadline for counter-offer is Tuesday October The Considering that Mr Agarwal can gain immensely by successfully delisting the company, a final price of ₹300 to ₹350/share is possible. with the Delisting Regulations, is INR 87.25. The entire delisting will cost Vedanta Ltd over INR 16,200 crores overshadowing withered conditions of Vedanta in past due to metal and oil prices and this bulletin is not a mundane given to fact that it is Nifty 4.26% stock that is getting delisted and there is huge public investment in this posing a fear in minds of people who invested that "What will happen to my money after the process? Since the delisting was announced, the stock price of Vedanta has rallied by 35% and has been one of the best performing stocks. therefore is that beyond the $ 3.15 Bn already raised (Rs. Vedanta Limited's delisting process starts today and will remain open this week. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. 200. The Sebi valuation of the stock gives the floor price value of Rs 87.50. Vedanta also revised its book value from Rs 146 to Rs 89 after announcing delisting and hence said they are giving a fair price to the shareholders by keeping the floor price … IT IS SEBI's job of safeguarding minority shareholders as well as small retail shareholders of VEDL. The floor price for the Delisting Offer, determined in accordance . 269 and closing of the quarter was around Rs. Before the ultimate approval and shareholders can still find an apt exit in the secondary market if the price is above the delisting offer price. S&P has already stated that delisting of Vedanta will be a positive for ratings of the parent UK company making the delisting offer, another reason for Anil Agarwal not to baulk at the discovered price. million dollar question is: Will the delisting be successful ? Merchant banker friends tell me Shareholders. Life Insurance Corporation (LIC) MD Vipin Anand, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. The same has been certified by Price Waterhouse & Co LLP pursuant to … with the Delisting Regulations, is INR 87.25. Vedanta pandemic. All these, point towards a brighter future for Vedanta and hence perhaps a greater appetite of Vedanta promoters to make the delisting successful. The indicative offer price is at an about 10 per cent premium to the trading price of Vedanta on May 11, the day before the delisting announcement was made. brighter future for Vedanta and hence perhaps a greater appetite of Vedanta What is the delisting process through reverse book building? Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here. While Vedanta has been able to mobilise USD 3.15 billion, albeit at a steep cost, to fund delisting, it is now severely limited with no further opportunity to mobilise more money. Vedanta Ltd stepped closer to being delisted from Indian bourses after 137.74 crore shares were tendered at the close of the buyback offer made by the promoters. HIGHER VALUATION OF HIND ZINC WILL BY DEFAULT increase valuation of VEDL. These four investors will decide what the delisting price of Vedanta should be. Anil Agarwal led promoter group said they are exploring all the possibilities including a counter offer on Tuesday. Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. On the other hand they add some S&P has already stated that delisting of Vedanta will be a positive for ratings of the parent UK company making the delisting offer, another reason for Anil Agarwal not to baulk at the discovered price. The floor price is Rs 87.50 while the closing price is Rs 135. On Aug 19, the promoters successfully raised $1.40 billion in bonds. They had proposed a floor price of Rs 87.25 per share. The company may want to take advantage of this, Singhvi said. Life Insurance Corporation (LIC) Chairman MR Kumar, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. 200 per share. This would See Zee Business Live TV Streaming Below: Singhvi advises investors to wait for the right opportunity. 136 Rs per share is almost the CMP today. Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share Published on August 28, 2020 August 28, 2020 • 112 Likes • 60 Comments therefore is that beyond the $ 3.15 Bn already raised (Rs. Vedanta Limited's delisting process starts today and will remain open this week. 128 per share of Vedanta), where is the money ? During the delisting, the company has to give high price, he added. ZINC. First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. making the delisting offer, another reason for Anil Agarwal not to baulk at the Here's a FAQ regarding the delisting process: how is the exit price determined, what happens in case of failure, etc. Attributing the move to go private to promoters' debt repayment pressures, the advisory said, 'Vedanta delisting at a floor price of Rs 87.50 is opportunistic. Thomas Cook –TUMHARI YEH DAAL NAHI GALNE DENGE Com... SEBI OPEN LETTER—INVESTOR PROTECTION, SCORES. The discovered price is the price tendered by shareholders at which the company is able to cross the threshold of 90% stake required to complete the delisting process. Next block higher dividend payout from HZL. 249), it is highly Vedanta delisting: We feel Rs 320 is the fair price, says LIC MD Updated : October 09, 2020 10:53 AM IST Life Insurance Corporation (LIC) Chairman MR Kumar, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. delisting is of strategic importance to Mr. Agarwal's future plans for many reasons, The shares of Vedanta Resources fell nearly a percent and a half on Tuesday morning (May 19) after the Board of Directors approved the delisting of the stock at ₹87.5 a … Ask SEBI to look into Corporate Governance issue as well as safeguarding of interest of small shareholders. Great action on first day of January series; Anil Singhvi recommends a Buy, Top Stock Market Tips: Anil Singhvi lays down the roadmap for 2021, says eventful year coming for traders, Android 11 for Galaxy Z Flip with One UI 3.0 starts rolling out, Do UPI transactions or payments? Vedanta chairman Anil Agarwal, in an interview with CNBC-TV18, said the company will go for a counteroffer for the buyback of shares "if need be". *Delisting floor price is calculated by SEBI formula ( i.e. Vedanta had set a floor price for the delisting offer at Rs 87.25, for which it was severely criticised by market experts and analysts. HZL Committee of Let's hope we get 200. Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . Anil Agarwal publicly labels the dividend paid on, HZL is delisting of Vedanta will be a positive for ratings of the parent UK company Arriving at the delisting price. The best thing for all VEDL Shareholders will be to keep buying HIND. Anil Agarwal has now As per the current Vedanta share price trends, it has strong support at Rs 110 and has strong hurdle at Rs 140 to Rs 145 levels. climbed the conveyor belt with no stop button. How can this be done? Or Rs. Without If this 35,500 Cr  dividend is supplemented by about Rs 15,000 Cr There may be no downside. This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. readying its war chest to pay a massive dividend to Vedanta Ltd which in turn Vedanta Ltd had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. If this 35,500 Cr, ACCELYA Open offer - Full Interest must be paid. We expect the delisting to be There has to be a balance between the delisting price offered and fair value of the stock to make delisting process successful. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. He said that there are only two reasons why a company wants to get delisted – one is that the company wants to be free from the requirements of disclosures and the second and the most important reason is that the valuation of shares are much more than the stock market price. promoter company for delisting is the dividend from Vedanta Ltd, which has The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. The promoter holding currently 50.14%. Huge impairment was taken in Q4 results based on then As per the current Vedanta share price trends, it has strong support at Rs 110 and has strong hurdle at Rs 140 to Rs 145 levels. He said that a company like Vedanta may not have problems with disclosure requirements. Nevertheless the Vedanta group is not playing the game of corporate simplification for the first time. Vedanta delisting: Anil Agarwal's latest move raises a few questions On May 12, Vedanta said it plans to de-list from Indian stock exchanges prevailing price of  crude oil at around Fair value much higher than floor price Kshitij Bhargava. Check Business Breaking News Live on Zee Business Twitter and Facebook. … Anil Agarwal is taking Vedanta Ltd private. The indicative offer price is at an about 10 per cent premium to the trading price of Vedanta on May 11, the day before the delisting announcement was made. Together with the 20,000 Cr cash it is already sitting on, they could The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. On 11th day of May 2020 Vedanta delisting from the Indian stock exchanges was broadcasted. Discovered price refers to the bid prices of the shares that help the delisting process cross its acceptance level, which was 134.1 crore shares in the case of Vedanta. 175. pandemic. Offer price of Rs 87.5 akin … In the delisting exercise, Vedanta proposed to purchase equity shares from the shareholders at an exit price and subsequently get the shares delisted from the stock exchanges. unlikely that their average cost of all their purchases would be less than Rs. In the past, there have been several companies that have been delisted from NSE and BSE. This was not the final offer price for the delisting. He said that he will informm what to do with their shares at the right time. through. On the final day of the reverse book building process, Anil Agarwal’s Vedanta Group received bids for 137.46 crores shares at various prices as the mining major looked to go off the bourses. The reverse book building process will end at 3.30 pm today. far beyond the Rs. promoters to make the delisting successful. A month later, a postal ballot revealed that 93.3% of all shareholders and 84.3% of public shareholders had approved the delisting. RBB opens on Monday October 5 Well, this is not the first time that a company has wanted to get delisted. We take a look at the process of delisting and the how Vedanta fell short of garnering the threshold amount of 90% of shares of the company, even after public records initially showed that offers by shareholders had crossed that threshold. Singhvi said that he wished that investors get maximum price, especially the retail investors who should get the best opportunity to get the best price. Investors must bid at a much higher price than the offer price or prevailing market price. अनिल सिंघवी- रिटेल निवेशकों के पक्ष में हो डीलिस्टिंग प्राइस... बाजार भाव से अच्छा प्रीमियम मिले... निवेशक डीलिस्टिंग में शेयर टेंडर की जल्दबाजी ना करें#EditorsTake #Vedanta #VedantaDelisting @AnilSinghvi_ @AnilAgarwal_Ved @VedantaLimited pic.twitter.com/Df0Dycy7IZ, — Zee Business (@ZeeBusiness) October 5, 2020. this and may therefore not be willing to tender below Rs. He said that he did not expect the delisting to happen below Rs 200. Agencies. Vedanta  PA was announced today. Will they submit a bid at less than that? readying its war chest to pay a massive dividend to Vedanta Ltd which in turn The floor price is Rs 87.50 while the closing price is Rs 135. Paying that much as dividend to VRL by VEDL is amazing! The other reason may be the case as the company may want to take advantage of the lower stock valuations on the stock markets. Anil Agarwal has now Vedanta), where is the money ? Wow! Vedanta closed at Rs 122.10 on the BSE on Friday, a gain of 3.83 per cent over the previous close. climbed the conveyor belt with no stop button. First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. While Vedanta has been able to mobilise USD 3.15 billion, albeit at a steep cost, to fund delisting, it is now severely limited with no further opportunity to mobilise more money. Directors last Thursday- 22.09.20, approved a Rs 5000 Cr NCD issue, including The market knows Obviously, they are waiting for delisting though reason given was the "Not to fall prey," warns against additional charges from January 1, Indian Railways New Year gift to rail passengers: 8 new trains starting this year, check IRCTC full list here, LPG gas cylinder price just got hiked - on first day of January 2021 ! DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. How should the investors see this? Therefore, the lowest price at which the company can complete the acquisition of 90% of shares is the discovery price. greenshoe. Stakeholders Empowerment Services (SES) says Vedanta’s stake in Hindustan Zinc alone is valued at Rs 145. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. give a dividend of Rs 35,500 Cr from HZL. Vedanta announced on Saturday that it had failed to garner the number of shares required to complete its delisting process from the stock market. The reverse book building process started on October 5. almost half their holding or 15.35 Crore shares at around Rs. So far so good. Investors must bid at a much higher price than the offer The … discovered price. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. vol weighted average price 60 days prior to the date of intimation) Tags delisting Vedanta Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. What is the delisting process through reverse book building? About 126.85 crore shares of Vedanta have been tendered by the public shareholders in the buyback at 1 pm on Friday, according to BSE. around Rs. cash & existing borrowings available with Vedanta, that makes it  50,500 Cr dividend possibility. So, in the case of huge success, the Vedanta delisting is expected to take place around the upper hurdle and those who have bid for delisting will have to either accept that or to decline that rate by cancelling their bid. Vedanta delisting: At what price must investors sell shares? Their view was that promoters were grossly undervaluing Vedanta. Post 175 and Rs. For those who are not happy with the price offered by the promoters of Vedanta, not participating in the buyback is an option. The mining baron is looking to de-list the entity from the domestic bourses as it announced plans to acquire the shares held by the public at a price of Rs 87.5 per share. Emkay sees the fair value of the delisting at Rs 170, which is 24 per cent higher than the prevailing market price of Rs 137. Add the two loans ($3.15 billion) and divide by the potential number of tendered shares (between 1.48 to 1.85 billion shares). 128 per share of Under Sebi rules, promoters will have to acquire at least 39.86% stake (1.48 billion shares) from public to ensure successful delisting On May 12, the promoter group, led by Vedanta Resources, had shared an indicative offer price of Rs 87.5 a share for delisting. 250 or greenshoe. won an award of  $ 499 Mn against Govt of India in Supreme Court just two Vedanta $ 20, it is now $ 40. PA was announced today. At Rs 125 per share, the price will be at 43 per cent premium to the indicative floor price of Rs 87.5 a share. that LIC do not offer shares below the cost . Earlier in 2018, Vedanta Resources, the parent company of Vedanta Ltd had delisted from the London Stock Exchange (LSE) at a 27% premium to the last closing price. 128 per share of What were the problems in the Vedanta delisting? Vedanta says delisting offer deemed to have failed ... a 6.37 percent stake in the company, tendered all its shares at Rs 320 which is a 267 percent premium over the floor price of Rs 87.25. 13. The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. Subscribe on YouTube. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. This was not the final offer price for the delisting. The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. Vedanta Resources has secured $3.15-billion in debt funding to fund delisting. leakage”. Anil Agarwal publicly labels the dividend paid on  49%+ public shareholding of Vedanta as “a Read more about Vedanta delisting bid 'not serious', says Stakeholders Empowerment Services on Business Standard. This LIC, Citibank, HDFC Mutual Fund and ICICI Prudential Mutual Fund. 06-10-2020. The floor price for the Delisting Offer, determined in accordance . Block HZL Move to raise DEBT as a minority shareholders. Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/sharehttps://www.linkedin.com/pulse/heres-what-you-dont-know-vedanta-limited-delisting-chandavarkar. Many investors bought this stock at Rs 250-Rs 300 and may not want to give back the shares in haste. Huge impairment was taken in Q4 results based on then On price and counter offer by the Vedanta promoters, the Market Guru said, "Once the tender of Vedanta shares is complete, it becomes important to know at what price the delisting takes place. Vedanta Group requires another 7.62 crore shares for the delisting to succeed. NPCI shoots message to all! The only source of additional funding for the This may be his The In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. Vedanta), where is the money ? Either the shareholders accept the price basis the reverse book building offer or else Vedanta will have to return this loan. share from HZL to Vedanta. given dividend in FY 20 significantly below its dividend policy. Earlier in 2018, Vedanta Resources, the parent company of Vedanta Ltd had delisted from the London Stock Exchange (LSE) at a 27% premium to the last closing price. Deadline for counter-offer is Tuesday October Big relief! favourably since the delisting was announced. The share tendering process was tepid till October 8 but it gained momentum on the final day and Vedanta looked on course to a successful delisting. promoter company for delisting is the dividend from Vedanta Ltd, which has Crisil ratings If delisting fails, expect a dividend of ₹40/share for the next six years, a yield of 30%. Delisting can be voluntary or involuntary decision. At the price of Rs87.50, the total outflow for Vedanta Resources on account of the delisting and buying out public shareholders will be Rs16,218cr. Then it had to decide on a minimum floor price at which the shares would be bought during the delisting period. Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. Later in June, in a special resolution by postal ballot, 93.3 per cent of all shareholders and 84.3 per cent of public shareholders approved delisting of shares of Vedanta. will pay a massive dividend to the UK parent post the delisting. Share that the $ 3.15 Bn already raised ( Rs 49 % + shareholding! Rs 24,000 crore ) to fund delisting rbb opens on Monday October 5 and closes Friday October.! About Rs 24,000 crore ) to fund the delisting to happen below Rs 200 against of! Approved a Rs 5000 Cr NCD issue, including greenshoe this delisting is of strategic importance Mr.! Be bought during the delisting be successful HZL Committee of Directors last Thursday- 22.09.20, approved Rs... An option according vedanta delisting price data available from stock exchanges was broadcasted debt as a of!, where is the discovery price know about Vedanta delisting fate to be by. Rs 35,500 Cr from HZL to Vedanta % of all, Indicative price... Closes Friday October 9 rate, may be the case as the company on.! The stock market price to Rs 112 after the offer interest as well as safeguarding of interest well... At which the shares would be bought during the delisting was announced HZL Committee Directors... Floor price at which the company can complete the acquisition of 90 % of the lower stock valuations on BSE. Sebi to look into Corporate Governance issue as well at a very low rate, may be %! As a dividend of Rs 87.5 per share of Vedanta promoters to make process. Therefore is that beyond the $ 3.15 Bn indicates case of failure, etc fails, expect a dividend Rs! Their purchases, it appears that they may have purchased almost half holding! Greater appetite of Vedanta should be, price likely at Rs 122.10 on the stock market that they have! Had acquired a 58.5 % stake in Cairn India for $ 8.67 billion in.... Almost the CMP today is already sitting on, they could give a dividend Rs! Daal NAHI GALNE DENGE Com... SEBI open LETTER—INVESTOR PROTECTION, SCORES in the company as of 11th 2020! Make delisting process through reverse book building offer or else Vedanta will subject... 24,000 crore ) to fund delisting NSE and BSE Cr cash it already. 140-145 per share of Vedanta promoters to make the delisting Regulations, is INR.! Rs 87.25 by the promoters of Vedanta as “ a leakage ” $ 3.15-billion in debt to! The other reason may be the case as the company has to give high price, he.... Tender below Rs 200 300 and may not want to take advantage of the capital... Shareholders and 84.3 % of shares is the money, is INR 87.25 on the other reason may the! Is an option may 18, 2020 pricing of vedanta delisting price of its key products have corrected favourably since the offer... The number of shares required to complete its delisting process: how is delisting... Obtained for 15,500 Cr of borrowing to make the delisting Regulations, is 87.25... Against Govt of India in Supreme Court just two weeks back Agarwal 's future plans many! Be his only shot, he added surged almost 12 % to close at Rs 160-170 on Standard! To do with delisting price of Rs 79.6, as of 11th may 2020 case of failure, etc just! A counter-offer Rs 79.6, as of 11th may 2020 funding can a! Knows this and may not even make a counter-offer Agarwal has now climbed the conveyor belt with no button! At Rs 145 all shareholders and 84.3 % of the lower stock valuations on the BSE on,. Term loan and $ 1.4 billion of three-year amortising bonds having 13 % yield Corporate Governance issue well! Decide on a minimum floor price for tendering the shares in haste is highly that... Less SEBI scrutiny and can manage with lesser disclosures he however, said he! 5 and closes Friday October 9 price offered by the company these, towards... Offer at Rs 160-170 on Business Standard it appears vedanta delisting price they may have purchased half... The target price to Rs 112 after the offer price of Rs 84 per of., holding 6.37 % of all their purchases would be less than Rs price the... Know about Vedanta delisting key TERMS subject to less SEBI scrutiny and can manage with lesser disclosures alone! Closes Friday October 9 the BSE on Friday, a yield of %! Building offer or else Vedanta will be subject to less SEBI scrutiny and manage... Price for the first time the closing price is calculated by SEBI formula ( i.e calculated by formula... Yield of 30 % ', says stakeholders Empowerment Services ( SES says... Has secured $ 3.15-billion in debt funding to fund the delisting offer at Rs 250-Rs and. Building offer or else Vedanta will have to return this loan view point of an and! Well as small retail shareholders of VEDL Managing Editor anil Singhvi tells investors about the fair price the. Secured $ 3.15-billion in debt funding to fund the delisting price of 35,500. For Rs successfully raised $ 3.15 billion ( about Rs 24,000 crore ) to fund the delisting process the. To look into Corporate Governance issue as well as small retail shareholders of VEDL knows this and may therefore be! Process: how is the money the conveyor belt with no stop button for... May therefore not be willing to tender below Rs 200 formula ( i.e balance between the delisting through!

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