Vedanta spurts on delisting plan

Vedanta surged 9.97% to Rs 98.20 after the company scheduled a board meeting on 18 May 2020 to consider the proposal for voluntary delisting of the equity shares of the company.

In an exchange filing made after market hours on Tuesday, Vedanta said promoter group Vedanta Resources (VRL) has expressed its intention to, either individually or along with one or more subsidiaries, acquire all fully paid-up equity shares of the company that are held by the public shareholders of the company and consequently voluntarily delist the equity shares from BSE and National Stock Exchange of India.

VRL along with the other members of the promoter group presently hold 176.43 crore equity shares aggregating to 51.06% stake while the public shareholders hold 169.10 crore equity shares aggregating to 48.94% stake in the company.

Further, VRL has informed us of their willingness to accept the equity shares of the company tendered by the public shareholders in the delisting offer at a price of Rs 87.5 per equity share (Indicative Offer Price), Vedanta said in the filing. The price will be determined in accordance with the reverse book building mechanism set out in the Delisting Regulations.

The Vedanta Group has been pursuing a process of corporate simplification for several years, including the merger of Sterlite with Sesa Goa to form Sesa-Sterlite (subsequently renamed Vedanta) in 2012, the merger of Cairn India with Vedanta in 2016, and the delisting of Vedanta Resources Plc (subsequently renamed Vedanta Resources) in 2018.

The Group believes that a delisting of Vedanta is the next logical step in this simplification process and will provide the Group with enhanced operational and financial flexibility in a capital intensive business.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia. Vedanta is a leading producer of oil & gas, zinc, lead, silver, copper, iron ore, aluminum, steel and commercial power.

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