Going by the response, the failure of the Vedanta delisting did not come as a shocker.
Shares can be delisted only when the promoter gets at least 90% stake and the company stated that the total number of Offer Shares validly tendered by the shareholders in the offer is 125.47 crore shares, which is less than the minimum number of offer shares required to be accepted by the acquirers in order for the delisting offer to be successful. To delist, 134.12 crore shares needed to have been tendered.
Accordingly, the acquirers will not acquire any equity shares tendered by the shareholders in the offer and the equity shares of the company will continue to remain listed on the stock exchanges. All equity shares tendered in the delisting offer will be returned to the respective public shareholders.
The main reason for the failure is stated to be LIC, which holds 6.37% in Vedanta, submitted all its shares at a price of Rs 320, a 266% premium over the floor price of Rs 87.25 per share and Friday’s closing price of Rs.122.10.
Understandably, the stock today opened as the top loser on the BSE, going down almost 18% to Rs.100.45 and continues to remain firmly in the red.
Our Editor, Mr.SP Tulsian expects volatility to remain. The shares are expected to be returned in the next two days.