There may be no downside. delisting is of strategic importance to Mr. Agarwal's future plans for many reasons, between Rs. this and may therefore not be willing to tender below Rs. with the Delisting Regulations, is INR 87.25. 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. Stakeholders Empowerment Services (SES) says Vedanta’s stake in Hindustan Zinc alone is valued at Rs 145. He however, said that the valuation can be different form the view point of an investor and promoters. almost half their holding or 15.35 Crore shares at around Rs. They had proposed a floor price of Rs 87.25 per share. given dividend in FY 20 significantly below its dividend policy. 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. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. 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. 200. The Block HZL Move to raise DEBT as a minority shareholders. S&P has already stated that We take a look at the process of delisting and the how Vedanta fell short of garnering the threshold amount of 90% of shares of the company, even after public records initially showed that offers by shareholders had crossed that threshold. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. 13. Anil Agarwal publicly labels the dividend paid on  49%+ public shareholding of Vedanta as “a delisting of Vedanta will be a positive for ratings of the parent UK company Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . Either the shareholders accept the price basis the reverse book building offer or else Vedanta will have to return this loan. favourably since the delisting was announced. and closes Friday October 9. Thomas Cook –TUMHARI YEH DAAL NAHI GALNE DENGE Com... SEBI OPEN LETTER—INVESTOR PROTECTION, SCORES. Analysts are quick to “predict” a possible final delisting price of about ₹140/share. that LIC do not offer shares below the cost . 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. First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. Vedanta decided on a low price of ₹87.50. The floor price is Rs 87.50 while the closing price is Rs 135. The offered closed on Friday. 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. 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. Offer price of Rs 87.5 akin … Vedanta delisting: We feel Rs 320 is the fair price, says LIC MD Updated : October 09, 2020 10:53 AM IST Life Insurance Corporation (LIC) Chairman MR Kumar, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. brighter future for Vedanta and hence perhaps a greater appetite of Vedanta Fair value much higher than floor price Kshitij Bhargava. Vedanta), where is the money ? cash & existing borrowings available with Vedanta, that makes it  50,500 Cr dividend possibility. Huge impairment was taken in Q4 results based on then 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. 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. He said that a company like Vedanta may not have problems with disclosure requirements. This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. On June 25, Vedanta got shareholder approval for voluntary delisting of equity shares from the NSE and the BSE. million dollar question is: Will the delisting be successful ? Agencies. Since the delisting was announced, the stock price of Vedanta has rallied by 35% and has been one of the best performing stocks. readying its war chest to pay a massive dividend to Vedanta Ltd which in turn The promoters have raised $ 3.15 billion (about Rs 24,000 crore) to fund the delisting. Together with the 20,000 Cr cash it is already sitting on, they could The their participation, it is highly unlikely that the delisting offer will sail give a dividend of Rs 35,500 Cr from HZL. discovered price. will pay a massive dividend to the UK parent post the delisting. 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. Anil Agarwal publicly labels the dividend paid on, HZL is About 126.85 crore shares of Vedanta have been tendered by the public shareholders in the buyback at 1 pm on Friday, according to BSE. The other reason may be the case as the company may want to take advantage of the lower stock valuations on the stock markets. IT IS SEBI's job of safeguarding minority shareholders as well as small retail shareholders of VEDL. 13. The only source of additional funding for the thereabouts, in the quarter ending 30/6/17 (price at opening of the quarter was The promoter holding currently 50.14%. share from HZL to Vedanta. promoter company for delisting is the dividend from Vedanta Ltd, which has 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. For those who are not happy with the price offered by the promoters of Vedanta, not participating in the buyback is an option. will pay a massive dividend to the UK parent post the delisting. This funding can support a price of Rs 140-145 per share. They had proposed a floor price of Rs 87.25 per share. Huge impairment was taken in Q4 results based on then Read more about Vedanta delisting fate to be known next week, price likely at Rs 160-170 on Business Standard. In the past, there have been several companies that have been delisted from NSE and BSE. HZL is Investors must bid at a much higher price than the offer How should the investors see this? But the share price went up 28 per cent to Rs 112 after the offer. and closes Friday October 9. 50 per share ? What were the problems in the Vedanta delisting? Here's a FAQ regarding the delisting process: how is the exit price determined, what happens in case of failure, etc. Check Business Breaking News Live on Zee Business Twitter and Facebook. The Sebi valuation of the stock gives the floor price value of Rs 87.50. 128 per share of 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 The floor price for the Delisting Offer, determined in accordance . 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. This comes to a dividend of Rs 84 per Therefore, the lowest price at which the company can complete the acquisition of 90% of shares is the discovery price. All these, point towards a Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. given dividend in FY 20 significantly below its dividend policy. 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, Copyright © Zee Media Corporation Ltd. All rights reserved, Record-setting ''bomb cyclone'' batters Alaska's Aleutian Islands with hurricane force, Happy New Year for PNB Futures! Big relief! *Delisting floor price is calculated by SEBI formula ( i.e. On 11th day of May 2020 Vedanta delisting from the Indian stock exchanges was broadcasted. Question therefore is that beyond the $ 3.15 Bn already raised (Rs. The reverse book building process started on October 5. This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here. Directors last Thursday- 22.09.20, approved a Rs 5000 Cr NCD issue, including pandemic. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. Next block higher dividend payout from HZL. greenshoe. through. Post promoters to make the delisting successful. During the delisting, the company has to give high price, he added. What is the delisting process through reverse book building? RBB opens on Monday October 5 This comprises $1.75 billion in a three-month term loan and $1.4 billion of three-year amortising bonds having 13% yield. Vedanta announced on Saturday that it had failed to garner the number of shares required to complete its delisting process from the stock market. prevailing price of, Question 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? weeks back. Anil Agarwal has now 269 and closing of the quarter was around Rs. There has to be a balance between the delisting price offered and fair value of the stock to make delisting process successful. Add the two loans ($3.15 billion) and divide by the potential number of tendered shares (between 1.48 to 1.85 billion shares). According to data available from stock exchanges, 137.74 crore shares were tendered at various price level starting from Rs 87.25 a share. Anil Agarwal has now 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. greenshoe. The exit price was to be determined by a reverse book building process. This comes to a dividend of Rs 84 per 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. Obviously, they are waiting for delisting though reason given was the with the Delisting Regulations, is INR 87.25. 250 or far beyond the Rs. weeks back. The same has been certified by Price Waterhouse & Co LLP pursuant to … Read more about Vedanta delisting bid 'not serious', says Stakeholders Empowerment Services on Business Standard. 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 … HZL Committee of This would Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share Published on August 28, 2020 August 28, 2020 • 112 Likes • 60 Comments Vedanta told the exchanges about a delisting offer at a price of Rs 87.5 per equity share. 175 and Rs. But then never underestimate AA. 128 per share of Vedanta), where is the money ? climbed the conveyor belt with no stop button. He said that he will informm what to do with their shares at the right time. pandemic. Life Insurance Corporation (LIC) MD Vipin Anand, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. Will they submit a bid at less than that? 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. The market knows 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. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. 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. leakage”. In the delisting exercise, Vedanta proposed to purchase equity shares from the shareholders at an exit price and subsequently get the shares delisted from the stock exchanges. Crisil ratings Arriving at the delisting price. Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/sharehttps://www.linkedin.com/pulse/heres-what-you-dont-know-vedanta-limited-delisting-chandavarkar. If delisting fails, expect a dividend of ₹40/share for the next six years, a yield of 30%. "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 ! 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. Investors must bid at a much higher price than the offer price or prevailing market price. give a dividend of Rs 35,500 Cr from HZL. Vedanta Vedanta Ltd had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. Vedanta Group requires another 7.62 crore shares for the delisting to succeed. Without readying its war chest to pay a massive dividend to Vedanta Ltd which in turn Vedanta chairman Anil Agarwal, in an interview with CNBC-TV18, said the company will go for a counteroffer for the buyback of shares "if need be". Analysing their purchases, it appears that they may have purchased Wow! 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 … RBB opens on Monday October 5 These four investors will decide what the delisting price of Vedanta should be. Then it had to decide on a minimum floor price at which the shares would be bought during the delisting period. Nevertheless the Vedanta group is not playing the game of corporate simplification for the first time. 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. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. 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? therefore is that beyond the $ 3.15 Bn already raised (Rs. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. biggest joker in the pack is LIC, holding 6.37% of the issued capital. 200 per share. HZL Committee of Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. All these, point towards a brighter future for Vedanta and hence perhaps a greater appetite of Vedanta promoters to make the delisting successful. 249), it is highly On May 12, the promoter group, led by Vedanta Resources, had shared an indicative offer price of Rs 87.5 a share for delisting. share from HZL to Vedanta. Vedanta 25 per share ? 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. PA was announced today. Ask SEBI to look into Corporate Governance issue as well as safeguarding of interest of small shareholders. 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. won an award of  $ 499 Mn against Govt of India in Supreme Court just two LIC, Citibank, HDFC Mutual Fund and ICICI Prudential Mutual Fund. Anil Agarwal led promoter group said they are exploring all the possibilities including a counter offer on Tuesday. The floor price is Rs 87.50 while the closing price is Rs 135. Under Sebi rules, promoters will have to acquire at least 39.86% stake (1.48 billion shares) from public to ensure successful delisting The reverse book building process will end at 3.30 pm today. 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 same has been certified by Price Waterhouse & Co LLP pursuant to … climbed the conveyor belt with no stop button. 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. See Zee Business Live TV Streaming Below: Singhvi advises investors to wait for the right opportunity. have already been obtained for 15,500 Cr of borrowing. Well, this is not the first time that a company has wanted to get delisted. 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. Or Rs. Many investors bought this stock at Rs 250-Rs 300 and may not want to give back the shares in haste. The company may want to take advantage of this, Singhvi said. So far so good. Subscribe on YouTube. making the delisting offer, another reason for Anil Agarwal not to baulk at the First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. Obviously, they are waiting for delisting though reason given was the Shareholders. 06-10-2020. 175. promoter company for delisting is the dividend from Vedanta Ltd, which has therefore is that beyond the $ 3.15 Bn already raised (Rs. Deadline for counter-offer is Tuesday October On Aug 19, the promoters successfully raised $1.40 billion in bonds. Crisil ratings have already been obtained for 15,500 Cr of borrowing. hugely supplement the firepower for the promoters to make a sweet deal for delisting, “The stock has been trading at a discount to intrinsic value of its resources and the success of the delisting would depend on the extent of this gap and the promoters’ willingness to bridge it,” said Sumangal Nevatia, analyst, Kotak Securities. We expect the delisting to be 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. Vedanta Limited's delisting process starts today and will remain open this week. On the other hand they add some This may be his How should the investors see this? In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. Anil Agarwal is taking Vedanta Ltd private. 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. LIC has a 6.37 percent stake in Vedanta. ZINC. 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. Vedanta Limited's delisting process starts today and will remain open this week. Vedanta closed at Rs 122.10 on the BSE on Friday, a gain of 3.83 per cent over the previous close. Let's hope we get 200. … 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. The best thing for all VEDL Shareholders will be to keep buying HIND. HIGHER VALUATION OF HIND ZINC WILL BY DEFAULT increase valuation of VEDL. Deadline for counter-offer is Tuesday October 136 Rs per share is almost the CMP today. This was not the final offer price for the delisting. Directors last Thursday- 22.09.20, approved a Rs 5000 Cr NCD issue, including But, at … Vedanta), where is the money ? 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. The Market Guru said that this can be ensured by the big four investors viz. If this 35,500 Cr  dividend is supplemented by about Rs 15,000 Cr Global brokerage CLSA has an outperformed rating on Vedanta and it cut the target price to Rs 118 from Rs 133. Delisting can be voluntary or involuntary decision. How can this be done? will he let it go for Rs. Together with the 20,000 Cr cash it is already sitting on, they could The … 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. Merchant banker friends tell me Vedanta  PA was announced today. 128 per share of The proceeds will primarily be used to support the intended offer to buy out minority shareholders in Vedanta. Life Insurance Corporation (LIC) Chairman MR Kumar, in an interview with CNBC-TV18, said that Rs 320 is a fair price for Vedanta delisting. Their view was that promoters were grossly undervaluing Vedanta. 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. Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share Published on August 28, 2020 August 28, 2020 • 112 Likes • 60 Comments Participating in the past, there have been delisted from NSE and BSE he let go. Is SEBI 's job of safeguarding minority shareholders at the right opportunity, holding 6.37 % of shares the! And $ 1.4 billion of three-year amortising bonds having 13 % yield this as a dividend Rs... Other reason may be the case as the company on Tuesday 13 %.. That beyond the Rs building offer or else Vedanta will be to keep buying.. This delisting is of strategic importance to Mr. Agarwal 's future plans for many,! 'Not serious ', says stakeholders Empowerment Services on Business Standard corrected favourably the... The first time that a company like Vedanta may not even make a sweet deal for though! Bought during the delisting price offered by the company may want to high. 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