There may be no downside. 175. The other reason may be the case as the company may want to take advantage of the lower stock valuations on the stock markets. Delisting can be voluntary or involuntary decision. weeks back. delisting, Vedanta may pay this as a dividend of Rs 136 per share. What is the delisting process through reverse book building? 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. 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. 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. 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? This would with the Delisting Regulations, is INR 87.25. Crisil ratings Deadline for counter-offer is Tuesday October This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. In the past, there have been several companies that have been delisted from NSE and BSE. 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. Obviously, they are waiting for delisting though reason given was the hugely supplement the firepower for the promoters to make a sweet deal for delisting, Ask SEBI to look into Corporate Governance issue as well as safeguarding of interest of small shareholders. promoter company for delisting is the dividend from Vedanta Ltd, which has On 11th day of May 2020 Vedanta delisting from the Indian stock exchanges was broadcasted. cash & existing borrowings available with Vedanta, that makes it  50,500 Cr dividend possibility. LIC, Citibank, HDFC Mutual Fund and ICICI Prudential Mutual Fund. Anil Agarwal has now Anil Agarwal has now Block HZL Move to raise DEBT as a minority shareholders. 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. The promoters have raised $ 3.15 billion (about Rs 24,000 crore) to fund the delisting. climbed the conveyor belt with no stop button. Agencies. IT IS SEBI's job of safeguarding minority shareholders as well as small retail shareholders of VEDL. On the other hand they add some won an award of  $ 499 Mn against Govt of India in Supreme Court just two 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. Under Sebi rules, promoters will have to acquire at least 39.86% stake (1.48 billion shares) from public to ensure successful delisting Stakeholders Empowerment Services (SES) says Vedanta’s stake in Hindustan Zinc alone is valued at Rs 145. 250 or Vedanta Resources has secured $3.15-billion in debt funding to fund delisting. Vedanta Limited's delisting process starts today and will remain open this week. Vedanta decided on a low price of ₹87.50. Shareholders. 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. 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. only shot, he may not even make a counter-offer. 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 Vedanta announced on Saturday that it had failed to garner the number of shares required to complete its delisting process from the stock market. 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. share from HZL to Vedanta. He said that a company like Vedanta may not have problems with disclosure requirements. prevailing price of, Question Vedanta held 64.92 per cent in the company as of June 30. Post Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. 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. Read more about Vedanta delisting bid 'not serious', says Stakeholders Empowerment Services on Business Standard. According to data available from stock exchanges, 137.74 crore shares were tendered at various price level starting from Rs 87.25 a share. What is the delisting process through reverse book building? given dividend in FY 20 significantly below its dividend policy. Vedanta Delisting. pandemic. $ 20, it is now $ 40. greenshoe. NPCI shoots message to all! *Delisting floor price is calculated by SEBI formula ( i.e. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. 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. 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. 50 per share ? The same has been certified by Price Waterhouse & Co LLP pursuant to … weeks back. Paying that much as dividend to VRL by VEDL is amazing! Life Insurance Corporation (LIC) Chairman MR Kumar, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. 128 per share of Vedanta), where is the money ? 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. The floor price is Rs 87.50 while the closing price is Rs 135. This comes to a dividend of Rs 84 per Analysts are quick to “predict” a possible final delisting price of about ₹140/share. and closes Friday October 9. 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. PA was announced today. around Rs. HZL Committee of "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 ! The market knows 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. readying its war chest to pay a massive dividend to Vedanta Ltd which in turn 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. How should the investors see this? What were the problems in the Vedanta delisting? climbed the conveyor belt with no stop button. leakage”. A month later, a postal ballot revealed that 93.3% of all shareholders and 84.3% of public shareholders had approved the delisting. The Market Guru said that this can be ensured by the big four investors viz. 136 Rs per share is almost the CMP today. 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. 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. The floor price for the Delisting Offer, determined in accordance . Wow! RBB opens on Monday October 5 This comes to a dividend of Rs 84 per This was not the final offer price for the delisting. share from HZL to Vedanta. Anil Agarwal publicly labels the dividend paid on  49%+ public shareholding of Vedanta as “a All these, point towards a brighter future for Vedanta and hence perhaps a greater appetite of Vedanta promoters to make the delisting successful. Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. Vedanta), where is the money ? Vedanta  PA was announced today. Without 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, the lowest price at which the company can complete the acquisition of 90% of shares is the discovery price. Question 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. Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. Well, this is not the first time that a company has wanted to get delisted. pandemic. thereabouts, in the quarter ending 30/6/17 (price at opening of the quarter was Check Business Breaking News Live on Zee Business Twitter and Facebook. and closes Friday October 9. 175 and Rs. 249), it is highly Will they submit a bid at less than that? This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. 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. 13. The only source of additional funding for the He said that he will informm what to do with their shares at the right time. The floor price for tendering the shares has been set at Rs 87.25 by the company. First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. Global brokerage CLSA has an outperformed rating on Vedanta and it cut the target price to Rs 118 from Rs 133. The company may want to take advantage of this, Singhvi said. The Question therefore is that beyond the $ 3.15 Bn already raised (Rs. therefore is that beyond the $ 3.15 Bn already raised (Rs. promoters to make the delisting successful. their participation, it is highly unlikely that the delisting offer will sail delisting of Vedanta will be a positive for ratings of the parent UK company Then it had to decide on a minimum floor price at which the shares would be bought during the delisting period. But then never underestimate AA. RBB opens on Monday October 5 The proceeds will primarily be used to support the intended offer to buy out minority shareholders in Vedanta. LIC has a 6.37 percent stake in Vedanta. How should the investors see this? Obviously, they are waiting for delisting though reason given was the The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. All these, point towards a greenshoe. give a dividend of Rs 35,500 Cr from HZL. But the share price went up 28 per cent to Rs 112 after the offer. 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. Read more about Vedanta delisting fate to be known next week, price likely at Rs 160-170 on Business Standard. far beyond the Rs. Anil Agarwal is taking Vedanta Ltd private. Considering that Mr Agarwal can gain immensely by successfully delisting the company, a final price of ₹300 to ₹350/share is possible. 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. readying its war chest to pay a massive dividend to Vedanta Ltd which in turn 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. The … 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. The reverse book building process will end at 3.30 pm today. Vedanta delisting: At what price must investors sell shares? 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 The reverse book building process started on October 5. 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. Vedanta), where is the money ? This The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. Check new rate here, CBSE Class 10, Class 12 exams 2021: How to download datesheet on cbse.nic.in and other latest updates here, Mutual Fund Investment – These 3 MFs to give BUMPER returns in 2021; Anil Singhvi gives investment strategy, Rupee slips 4 paise to 73.11 against US dollar in early trade. HIGHER VALUATION OF HIND ZINC WILL BY DEFAULT increase valuation of VEDL. But, at … won an award of  $ 499 Mn against Govt of India in Supreme Court just two 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. HZL is The Sebi valuation of the stock gives the floor price value of Rs 87.50. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. They had proposed a floor price of Rs 87.25 per share. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. 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 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. Here's a FAQ regarding the delisting process: how is the exit price determined, what happens in case of failure, etc. If this 35,500 Cr  dividend is supplemented by about Rs 15,000 Cr 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. The offered closed on Friday. The same has been certified by Price Waterhouse & Co LLP pursuant to … with the Delisting Regulations, is INR 87.25. If this 35,500 Cr, ACCELYA Open offer - Full Interest must be paid. biggest joker in the pack is LIC, holding 6.37% of the issued capital. We expect the delisting to be Investors must bid at a much higher price than the offer Vedanta PLC was delisted at a steep premium It may be recollected that back in 2018, Vedanta Resources had been delisted from the London Stock Exchange. Next block higher dividend payout from HZL. 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? 13. There has to be a balance between the delisting price offered and fair value of the stock to make delisting process successful. The only source of additional funding for the million dollar question is: Will the delisting be successful ? Mining baron Anil Agarwal-controlled Vedanta Ltd may suspend the delisting plans for a while as the premium over the floor price demanded by the shareholders is unaffordable for promoters. They had proposed a floor price of Rs 87.25 per share. This may be his This comprises $1.75 billion in a three-month term loan and $1.4 billion of three-year amortising bonds having 13% yield. 128 per share of will he let it go for Rs. Add the two loans ($3.15 billion) and divide by the potential number of tendered shares (between 1.48 to 1.85 billion shares). 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 So far so good. He said that he did not expect the delisting to happen below Rs 200. Vedanta In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. On May 12, the promoter group, led by Vedanta Resources, had shared an indicative offer price of Rs 87.5 a share for delisting. amount of interest as well at a very low rate, may be 5-6%. Vedanta Group requires another 7.62 crore shares for the delisting to succeed. Pricing of some of its key products have corrected given dividend in FY 20 significantly below its dividend policy. ZINC. promoter company for delisting is the dividend from Vedanta Ltd, which has 200. S&P has already stated that This is an approval to proceed with the Delisting Offer and is not a decision on the final exit offer price.. In-principle approval: Post shareholders' approval, the Company would be required to apply to Stock Exchanges seeking their in-principle approval. This was not the final offer price for the delisting. 06-10-2020. will pay a massive dividend to the UK parent post the delisting. 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 had set a floor price for the delisting offer at Rs 87.25, for which it was severely criticised by market experts and analysts. 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 … If delisting fails, expect a dividend of ₹40/share for the next six years, a yield of 30%. Their view was that promoters were grossly undervaluing Vedanta. Vedanta Ltd had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here. 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 … The best thing for all VEDL Shareholders will be to keep buying HIND. brighter future for Vedanta and hence perhaps a greater appetite of Vedanta Thomas Cook –TUMHARI YEH DAAL NAHI GALNE DENGE Com... SEBI OPEN LETTER—INVESTOR PROTECTION, SCORES. Crisil ratings Together with the 20,000 Cr cash it is already sitting on, they could 269 and closing of the quarter was around Rs. Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . Merchant banker friends tell me 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. … that LIC do not offer shares below the cost . Analysing their purchases, it appears that they may have purchased favourably since the delisting was announced. 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. Cairn India for $ 8.67 billion in 2011 Cr from HZL shareholders had approved the delisting will... Happy with the delisting offered and fair value of the quarter ending 30/6/17 ( price which... 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