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. The debt raised for delisting of Vedanta Ltd at $ 2.5 billion only aggravated its debt position. In case of failure of the Delisting Offer. 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 … After the failed delisting, shares of Vedanta Limited tanked 22% on Monday to trade at Rs 94 per share. • Delisting Regulations: SEBI (Delisting of Equity Shares) Regulations, 2009, as amended. 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). 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. That could be a fair expectation as far as the stock is concerned. Vedanta Limited's delisting process starts today and will remain open this week. Vedanta’s delisting process will open on October 5. • Equity Shares: Fully paid-up equity shares of the 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. Now Vedanta does not have to share the dividends from Hindustan Zinc with minority shareholders. "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," said Vedanta Limited in a statement available on the BSE website. They had announced plans of delisting its shares. When are the shares delisted from the stock exchanges? New Delhi: Vedanta group's failed attempt at delisting an India-listed entity has triggered a debate on rules concerning efforts by a foreign promoter to take an India-listed company private, with some officials questioning the 'FDI' tag used for such a move and the limited disclosures made through the official stock exchange route. 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. Asian ADRs Move Lower in Thursday Trading, Asian ADRs Climb Higher in Tuesday Trading. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. 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. mumbai Vedanta Resources Vedanta Ltd OCM … It would be decided on the basis of bidding by the Public Shareholders during the bidding period. Target / Company: Vedanta Limited ("VEDL "). 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. Read More News on. Distributed by Public, unedited and unaltered, on 29 May 2020 05:15:07 UTC, End-of-day quote NSE India Stock Exchange - 01/05, promoters, promoter group and persons acting in concert with them; and, holders of depository receipts issued overseas against Equity Shares held with a custodian, Further actions can be taken only if it is approved with a 2:1 majority of Public, Public announcement and dispatch of letter of offer, approval, Promoter will make a public announcement (", ") and dispatch letter of offer (containing material information in relation to the Delisting Offer) (". ") Where the Promoter decides to: (a) not accept the discovered final exit offer price; or (b) the counter offer is not successful, then the Delisting Offer will fail. 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… Shares of Vedanta Ltd dropped 2.2% to Rs 160.15 apiece after the announcement. 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. The output from its … 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. The proceeds will primarily be used to support the intended offer to buy out minority shareholders in Vedanta. Vedanta delisting kicks off: Investors’ lobby suggests bid price at Rs 236-310 07 Oct, 2020, 09.17 AM IST. 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. It operates iron ore, gold, and aluminum mines in the states of Goa, Rajasthan, and Odisha. Can I participate even if I don't receive the LOF and the bid form? As you may have noticed, the company has been all over the news since May. 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. Neither the IOP nor the floor price is the final exit offer price for the Delisting Offer. 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"). The Delisting Offer shall be considered successful if the Equity Shares accepted through the Delisting Offer takes the shareholding of the Promoter (along with persons acting in concert) to at least 90% of the paid-up equity share capital of the Company, excluding the shares which are then held by a custodian and against which ADS have been issued, and if the Promoter accepts the final exit offer price (which is determined in accordance with the reverse booking building process) in accordance with the Delisting Regulations. 09-10-2020 . In terms of the Delisting Regulations, before making the PA, the Promoter will be required to deposit in the escrow account the total estimated amount of consideration calculated on the basis of the floor price and number of Equity Shares outstanding with Public Shareholders. Earlier, … Upon the receipt of the approval of the Stock Exchanges, the Equity Shares will be delisted. along with bid form to the Public Shareholders. 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