What Is The Fair Price For Vedanta Delisting?

Voluntary delisting whereby the exit price is determined through the Reverse Book Building process– The floor price is calculated in accordance with the regulations and the shareholders have to make a bid at a price either on or above the floor price.

What will happen to Vedanta shares after delisting?

In this case, you, as an eligible shareholders can exit by tendering your shares. The final price is decided based on the price at which the maximum number of shares has been offered. When the shares tendered by the shareholders reach the specified limits, delisting is considered successful.

What is Vedanta delisting offer?

Over 377 million shares were tendered in the voluntary open offer launched in Anil Agarwal-owned Vedanta. After a failed delisting bid, promoter Vedanta Resources offered to buy up to 651 million shares (17.5 per cent equity) at Rs 235 apiece from the public shareholders of the company.

What can I do with Vedanta delisting?

Post delisting of the Company, the remaining Public Shareholders holding 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.

Is Vedanta delisting successful?

The delisting bid, it said, “has not been successful.” “The bid would have resulted in FDI inflow of over $3.15 billion into the Indian economy and helped boost growth between 0.4 per cent and 0.8 per cent through the multiplier impact of such large infusion of funds,” the firm said.

Do I lose my money if a stock is delisted?

When a company delists, investors still own their shares. However, they’ll no longer be able to sell them on the exchange. … If the company is forced to delist, it often spells bankruptcy or causes investors to lose confidence.

Can a delisted stock come back?

A delisted stock can theoretically be relisted on a major exchange, but it’s rare. The delisted company would have to avoid bankruptcy, solve the issue that forced the delisting, and again become compliant with the exchange’s standards.

Can Vedanta delist again?

However, a cooling off period of one year is a must between the close of the voluntary open offer and a new delisting process. If Vedanta is successful is increasing its stake to 75%, it can mop up the remaining 15% required from the public through a second delisting one year later, market experts said.

What is Discovery price in delisting?

The exit offer price or discovered price is one at which the shares tendered take the holding of the promoter or acquirer to at least 90% of the paid-up capital.

How is delisting price decided in India?

The minimum acquisition price for the delisting is determined based on parameters set out in the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations) and disclosed as the ‘floor price’. This concept has been carried over from the erstwhile regulations without any change.

Is delisting good or bad?

Exchange-Initiated Delisting

When a company is involuntarily delisted, it is often a bad sign of money or managerial trouble, and it often causes the stock price to fall.

What should retail investors do for Vedanta delisting?

The delisting will be done on the stock exchanges via the process of reverse book building, which will enable eventual price discovery. Vedanta Resources has agreed to buy back the public shareholding of Vedanta Ltd at a price of Rs87. 50 per share; a small discount to the current market price.

Why is Vedanta delisting?

Delisting of Vedanta, on the other hand, failed because promoter wanted to take the company private on the cheap. They were trying to take advantage of dislocation in the stock price, caused by Covid 19.

What is the advantage of delisting?

Advantages. The company does not need to comply with the minimum listing criteria regulation of the security exchange board. The listing expenses and the annual trading cost of the company are saved when the company decides to delist itself.

What happens to your money if a stock is delisted?

If a company has been delisted, it is no longer trading on a major exchange, but the stockholders are not stripped of their status as owners. The stock still exists, and they still own the shares. However, delisting often results in a significant or total devaluing of a company’s share value.

How do I sell unlisted shares?

Step by step process to sell unlisted /Pre IPO shares is as under:

  1. Step 1: A deal is proposed between unlisteddeal and seller either on WhatsApp or over email.
  2. Step 2: Seller provides their client master copy, PAN card copy, Aadhar card copy, delivery instruction slip (DIS) copy and cancelled cheque copy.

What happens when a stock is untradeable?

The stock was delisted from the major exchanges and trades in the OTC market. … It’s a foreign security, which we don’t support. The security is undergoing a corporate action.

What does delisting mean?

Delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.

What went wrong with Vedanta delisting?

The key issue according to some experts was the discovered price at which Vedanta would be required to acquire a significant portion of shares. Vedanta announced on Saturday that it had failed to garner the number of shares required to complete its delisting process from the stock market.

Who is owner of Vedanta?

Anil Agarwal is the chairman of Vedanta Resources Plc, a company he founded in 1976. The company started as a cable manufacturer and went on to be listed in the London Stock Exchange in 2003.

Why did Vedanta delisting fail?

In the end, Vedanta was not able to get delisted because it could garner offers for only around 125.47 crore shares as against the limit of 134 crore shares that was necessary for the delisting process to become successful.

How do I bid for delisting of Vedanta?

Shareholders, who wish to participate in the delisting process, can tender their shares by quoting a price at or above the floor price. The bidding process would close on October 9, Friday. After the bids are collected, they are arranged in lowest to highest order.

How many shares are required for delisting?

The government in 2010 made it compulsory for the organizations to make a minimum of 25% of its shares available for trading to the general public. This in turn caused delisting of securities by promoters who hold more than 75% of securities.

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