Vedanta Limited's delisting process starts today and will remain open this week. This often triggers a decline in the value of a stock. The company’s reverse book building process went on from 5th-9th October, and only 125.47 crore shares were given up by public shareholders compared to the 134.12 crore they needed to cross the 90% threshold. After dropping to an intra-day low of Rs 117.6, the stock ended at Rs 122.4, down 11.3 per cent on the NSE, where Rs 1,365 crore worth of shares changed hands on the counter. The Bottom Line. The term Vedanta means in Sanskrit the “conclusion” (anta) of the Vedas, the earliest sacred literature of India. Thereafter, Vedanta will pay existing shareholders 9.54 paise per share to exit the company ie: delist it. The term Vedanta means in Sanskrit the “conclusion” (anta) of the Vedas, the earliest sacred literature of India. For long-term investors in Vedanta, it is time to switch over to a better stock, says Mahantesh Sabarad, head of retail research at SBICAP Securities.. On Vedanta delisting I do not belong to the camp that says that the delisting price will be somewhere around Rs 175-190. (Bloomberg) -- A unit of Vedanta Resources will issue $400 million in notes to an entity under Oaktree Capital Group, as the mining conglomerate looks to meet liquidity needs. Comments are closed. All equity shares tendered in the delisting offer shall be returned to the respective public shareholders, Vedanta announced; no final application will be made to stock exchanges for delisting. The company will now remain listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the company said in a regulatory filing. Number of shares = 19.6 croreFace Value: Rs 10 per share. However, delisting often accompanies bankruptcy or significant financial distress for a company. The floor price is Rs 87.50 while the closing price is Rs 135. Vedanta Star’s resolution plan for Electrosteel involves an equity and debt infusion amounting to Rs 5,320 crore. Comments are closed. Pl advise what action needs to be taken now or later regarding delisting of Vedanta shares held by me in De mt for, @2 Would they remit the value of the hares directly into my demat linked SB account. The Vedanta delisting offer price is set at Rs 87, but it may change. During mergers, one company may exchange its shares for shares in the company that acquired it, and any shareholders will have their shares converted, as well. 87.50 per share. While the floor price for the buyback was set at Rs 146.05 per share, the promoters agreed to pay Rs 262.80 per share - a premium of 80 per cent. Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading Oil & Gas … However, two developments seem happened, after intention of delisting was announced on 12th May, 2020 by the Vedanta promoters. YES.. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. That’s the bad news. Here’s how the exit will work for existing shareholders…. Number of shares = … Vedanta Limited's delisting process starts today and will remain open this week. 7.5% Non-Convertible Non-Cumulative Redeemable Preference Shares ('RPS') of face value of Rs. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. Below is the timeline on how the process will play out. 3515 cr. In the recent 3Q20 report, the company showed revenue of $593.6 million, down over 15% year-over-year. The current face value of an Electrosteel share is Rs 10. The promoter first cut the book value of the company before delisting so he could start at a lower price of 87. At the end of the five-day reverse book building (RBB) process, which ended on October 9, Vedanta acquired only 125.47 crore shares, the listed confirmed. On Thursday 56.6 crore shares were offered. 255 per share (present market price at Rs. Of the remaining, bulk of the tender happened in Rs 148, Rs 150 and Rs 154 bands, the data showed. as debt, so electrosteel will now owe Vedanta debt of Rs. The bigger picture. If you bought the shares more than the offer price i.e. This requires 90 per cent acceptance from all stakeholders. What happened. Having KCM investors, Vedanta Resources, pulling out of Konkola Copper Mines will not be a new thing. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. Though Electrosteel’s current market price is Rs 1.10 per share, it’s well accepted that equity shares of an insolvent company are usually worth nothing. KAR shares slipped 13% in 2020, in a year of volatile trading. Around 12.32 crore tendered shares could not be confirmed by the end of the RBB process. The promoter of this company tried to cheat the retail investors by trying to delist this share at a very low price but fortunately failed. Electrosteel will issue 740 crore new shares to lenders. Vedanta Resources Ltd (VRL), which owns 50.1 per cent of Vedanta Ltd, has offered to acquire all of the balance 49.9 per cent shareholding held … ... Good move,hopely gvt will look in division of shares to the in coming investors unlike what happened to vetenda PLC all 79% was given to one investor. Those 100 shares, of face value Rs 10 each, will get reduced to 100 shares of face value 20 paise each. 3. 2. The company went public in 1981 with 42,000 Indian shareholders, ... 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