As you may have noticed, the company has been all over the news since May. The Company has initiated a shareholder approval process via postal ballot - what is this? The Company shall continue to be listed on the Stock Exchanges. Vedanta Ltd's promoters cannot sell or create any security on shares they hold in the group as part of the terms attached to the recent USD 1.4 billion fund raising -- … Vedanta delisting kicks off: Investors’ lobby suggests bid price at Rs 236-310 07 Oct, 2020, 09.17 AM IST. • Delisting Regulations: SEBI (Delisting of Equity Shares) Regulations, 2009, as amended. This can be done by way of a cash deposit or by a bank guarantee or a combination of both. It operates iron ore, gold, and aluminum mines in the states of Goa, Rajasthan, and Odisha. Shareholders. In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources Limited and its indirect subsidiaries namely, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, (collectively to be referred as "Acquirers") that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations. The delisting is also supposed to support a fast-tracked debt reduction program in the medium term. They had announced plans of delisting its shares. When is the Delisting Offer deemed to be successful? Therefore, floor price is a minimum price which is required to be offered to the Public Shareholders. Promoter has communicated an Indicative Offer Price ("IOP") in its letter dated May 12, 2020, wherein it expressed its willingness to accept Equity Shares tendered by the Public Shareholders at the IOP of INR 87.50. As the delisting efforts of the company became unsuccessful, the equity shares tendered by the public shareholders will be returned by october 23, 2020. NEXT STEPS: Shareholders' approval: The Company has sent postal ballot notice on May 25, 2020 to seek shareholders' approval for the Delisting Offer by way of special resolution through postal ballot and e-voting. Vedanta Resources Ltd (VRL) dollar bonds rallied as the mining major announced that it has raised $1.4bn in privately issued debt to retire previous debt and sold notes partly backed by shares in its subsidiary Vedanta Ltd worth $1bn to Citicorp International Ltd and $400mn to an entity backed by Oaktree Capital Group. How should the investors see this? An email query sent to Vedanta went unanswered. Vedanta Ltd on Monday said its board has approved the proposed de-listing of mining baron Anil Agarwal's flagship Indian unit from the BSE and the National Stock Exchange. Vedanta Delisting. Yes, a Public Shareholder can participate in the Delisting Offer and make bids even if it did not receive the LOF and the bid form. The delisting will give more financial flexibility to Vedanta. The floor price for the delisting is calculated in accordance with the Delisting Regulations and the Public Shareholders are required to bid at a price either at or above the floor price during the reverse book building process. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. The Promoter is not bound to accept the Equity Shares at the final price discovered pursuant to the reverse book building process. SUMMARY OF THE PROCESS: Intention to delist: On May 12, 2020, the Promoter expressed its intention to voluntarily delist the Equity Shares in accordance with Delisting Regulations and highlighted an Indicative Offer Price of … In the past, there have been several companies that have been delisted from NSE and BSE. Winston Jesudas 189 days ago. Vedanta Ltd. joined the race for acquiring state-owned Bharat Petroleum Corp. three months after its failed delisting and when analysts have flagged risks about its leverage. In cases where the bids have not been accepted, the Equity Shares tendered by the Public Shareholders during the reverse book building process shall be returned or released to them within ten working days from the closure of the bidding period. That could be a fair expectation as far as the stock is concerned. It would be decided on the basis of bidding by the Public Shareholders during the bidding period. Vedanta Limited announced delisting plans in May this year. Vedanta Delisting FAQs: Is it necessary to participate, what happens in case of failure? Why Vedanta delisting is likely to fail; NYSE to delist Chinese telco giants on US executive order; Ineos Styrolution delisting failure to have bearing on other ongoing delistings ; Sebi gives six more months to Prabhat Dairy for delisting shares; Vedanta says committed to India after failed delisting; 52 Comments on this Story. Vedanta Limited's delisting process starts today and will remain open this week. Vedanta on Tuesday told the exchanges about a delisting offer at a price of Rs 87.5 per equity share. with the Delisting Regulations, is INR 87.25. In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. If a Public Shareholder has not tendered its Equity Shares during the Delisting Offer, it will continue to remain the shareholder of the Company and will have all the rights and benefits a shareholder of an unlisted public company has such as right to vote and right to receive dividends (if declared by the Company). If the final exit offer price is not acceptable to the Promoter, it may either reject the offer or has the option to make a counter offer to the Public Shareholders in accordance with the Delisting Regulations. Vedanta Ltd had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. Billionaire Anil Agarwal’s Vedanta Limited has received the approval of shareholders to delist the company from stock exchanges, and take it private, the … If the Delisting Offer is successful (discussed above), the Equity Shares will be delisted from the Stock Exchanges and the Company will become an unlisted public company. As mentioned above, the final exit offer price will be determined pursuant to the reverse book building process as specified under the Delisting Regulations. Vedanta Limited published this content on 28 May 2020 and is solely responsible for the information contained therein. If the Delisting Offer is successful (discussed above), the Equity Shares will be delisted from the Stock Exchanges and the Company will become an unlisted public company. Copyright © 2018 Vedanta limited. FAQS ON THE PROPOSED DELISTING OF VEDANTA LIMITED 5 | Page success of the Delisting Offer along with the final exit offer price; or (b) failure of the Delisting Offer. The Vedanta Group (the "Group") has been pursuing a process of corporate simpli cation for several years, including the merger of Sterlite with Sesa Goa to form Sesa-Sterlite (subsequently renamed Vedanta Limited) in 2012, the merger of Cairn India with the Company in 2016, and the delisting of Vedanta Resources Plc (subsequently renamed Vedanta Resources Ltd) in 2018. : +91 22 6643 4500; Fax no. Once the Delisting Offer is successful, the Equity Shares will be delisted from the Stock Exchanges and the Company will become an unlisted public company. If the final exit offer price is accepted, then, the Promoter shall accept all Equity Shares tendered where the corresponding bids placed are at the final exit offer price or at a price which is lesser than the final exit offer price. 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. Therefore, floor price is a minimum price which is required to be offered to the Public Shareholders. In the event the final exit offer price is not accepted by the Promoter, it has an option to make a counter offer in accordance with the Delisting Regulations. On determination of the final exit offer price and acceptance of the same by the Promoter, an additional sum to make up the entire sum due and payable as consideration in respect of Equity Shares outstanding with Public Shareholders will be required to be deposited in the escrow account. 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. Vedanta Ltd is nearing delisting. The Public Shareholders holding such Equity Shares may tender their Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such a case, the Promoter shall accept the shares tendered at the final exit offer price. How should the investors see this? The final exit offer price shall be determined as the price at which Equity Shares accepted through eligible bids, that takes the shareholding of the Promoter (along with the persons acting in concert) to at least 90% of the paid up equity share capital of the Company, excluding the Equity Shares which are then held by a custodian and against which ADS have been issued. Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. The dividend definitely is on cards. Accordingly, the Company has dispatched the postal ballot notice to its shareholders on May 25, 2020. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. Vedanta Limited announced delisting plans in May this year. The company has cash. If a Public Shareholder has not tendered its Equity Shares or its Equity Shares have not been accepted because the price quoted by the Public Shareholder was higher than the final exit offer price (determined as per the reverse book building process) during the Delisting Offer, it may tender its Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such a case, the Promoter shall accept the shares tendered at the final exit offer price. They had announced plans of delisting its shares. Step 1: Vedanta Limited will seek shareholders’ approval for the delisting proposal by way of a special resolution through postal ballot and e-voting (This can typically take 4-5 weeks). It operates iron ore, gold, and aluminum mines in the states of Goa, Rajasthan, and Odisha. All the Public Shareholders whose Equity Shares are verified to be genuine shall be paid the final exit offer price within ten working days from the closure of the bidding period. Is the Promoter required to deposit any amount in an escrow account? floor price and number of Equity Shares outstanding with Public Shareholders. The failure of the delisting offer is sentimentally negative for Vedanta. mumbai Vedanta Resources Vedanta Ltd OCM … It says it wants to simplify its corporate holdings framework. Kolkata: The board of Vedanta Limited on Monday approved a proposal for delisting of the company after taking into record a due diligence report dated May 18, 2020 by SBI Capital Markets. Target / Company: Vedanta Limited ("VEDL"). Asian ADRs Move Lower in Thursday Trading, Asian ADRs Climb Higher in Tuesday Trading. LIC, which held 6.37% in Vedanta, tendered all its shares at Rs 320, a 267% premium over the floor price of Rs 87.25, which upset Vedanta… Reverse book building is a mechanism to determine the share price for delisting of a stock. How am I supposed to tender shares and indicate a price in this process? Now Vedanta does not have to share the dividends from Hindustan Zinc with minority shareholders. Remote e-voting commences at 9:00 A.M.(IST) on Tuesday, May 26, 2020 and ends at 5:00 P.M. (IST) on Wednesday, June 24, 2020. • Equity Shares: Fully paid-up equity shares of the Company. After the failed delisting, shares of Vedanta Limited tanked 22% on Monday to trade at Rs 94 per share. Neither the IOP nor the floor price is the final exit offer price for the Delisting Offer. Vedanta delisting: Failed move triggers debate on FDI tag, limited disclosure ZeeBiz hits bull's eye on Vedanta delisting; Anil Singhvi first to tell viewers move likely to fail Vedanta Resources and promoter group companies have moved a proposal to delist Vedanta Ltd from the Indian stock exchanges, it has said in an exchange filing. The floor price for the delisting is calculated in accordance with the Delisting Regulations and the Public Shareholders are required to bid at a price either at or above the floor price during the reverse book building process. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. The delisting at the indicative price would cost $2.2 billion and we believe funding would be possible based on potential additional annual dividend income of $500 million,” said Kotak Institutional Equities. Vedanta Resources Limited which owns a 36.8% stake in Vedanta Limited is of the firm opinion that the delisting will definitely boost operational and financial flexibility, as well as transform credit profile of the company. In accordance with the Delisting Regulations, the holders of ADS will not be entitled to participate in the Delisting Offer, unless they convert their ADS into Equity Shares. 4. As the delisting efforts of the company became unsuccessful, the equity shares tendered by the public shareholders will be returned by october 23, 2020. 09-10-2020 . no. Keep the stock. promoters, promoter group and persons acting in concert with them; and. Yet, billionaire Anil Agarwal needs the oil refiner more than ever. Below is the timeline on how the process will play out. Shares of Vedanta Ltd dropped 2.2% to Rs 160.15 apiece after the announcement. Since then, the company received shareholder approval for delisting, and the promoters … In a notification to the BSE late on Monday evening, Vedanta said the board also approved the company's plan to seek shareholders approval for the delisting proposal through special resolution … It would be decided on the basis of bidding by the Public Shareholders during the bidding period. After the success of the Delisting Offer and payment of consideration to the Public Shareholders who have tendered their Equity Shares, the Company will make the final application to the Stock Exchanges. If they cannot reward shareholders with the buyback at a better price, dividends certainly would give an opportunity. It essentially has eight subsidiaries. Either the shareholders accept the price basis the reverse book building offer … To delist, Vedanta would need the board’s approval. Sub: Update regarding proposed voluntary delisting of the equity shares of Vedanta Limited ("Company") in accordance with the provisions under the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended ("Delisting Regulations"). Does the delisting have any impact on the voting and dividend rights? The Promoter has the discretion either to accept or reject the final exit offer price discovered pursuant to the reverse book building process. Exchanges in accordance with the Delisting Regulations. Can I participate even if I don't receive the LOF and the bid form? All right reserved. The move comes weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. The final exit offer price shall be determined as the price at which Equity Shares accepted through eligible bids, that takes the shareholding of the Promoter (along with the persons acting in concert) to at least 90% of the paid up equity share capital of the Company, excluding the Equity Shares which are then held by a custodian and against which ADS have been issued. The postal ballot process is only to seek shareholders' approval in relation to the Delisting Offer. 5. The floor price is Rs 87.50 while the closing price is Rs 135. The Promoter has the discretion either to accept or reject the final exit offer price discovered pursuant to the reverse book building process. LIC, which held 6.37% in Vedanta, tendered all its shares at Rs 320, a 267% premium over the floor price of Rs 87.25, which upset Vedanta's calculations. 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. The Public Shareholders holding such Equity Shares may tender their Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such a case, the Promoter shall accept the shares tendered at the final exit offer price. A total of 134 crore shares or … Vedanta’s UK-based promoters have made an open offer to delist the company shares from the BSE and the NSE. The debt raised for delisting of Vedanta Ltd at $ 2.5 billion only aggravated its debt position. Public Shareholders holding the Equity Shares in physical form should note that the Equity Shares will not be accepted unless the complete set of documents is submitted. 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