Vedanta open offer subscribed just 58% after failed delisting bid

Following open offer, promoter holding in Vedanta is set to rise by 10%. Currently, promoter group holds 55.1%. Had the maximum 651 mn shares been tendered, promoter stake would have risen to 72.6%

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. However, it could mop up only 58 per cent of the maximum shares it intended to buy through the open offer.

Following the open offer, the promoter holding in Vedanta is set to rise by 10 per cent. Currently, the promoter group holds 55.1 per cent stake. If the maximum 651 million shares would have got tendered the promoter stake would have increased to72.6 per cent.

Of the 44.6 per cent stake held by the public, state-owned LIC holds the biggest chunk at 5.6 per cent. Market players said the insurance giant may not have tendered its shares as it had quoted a far higher amount of Rs 320 during the delisting bid in October. Foreign portfolio investors (FPIs) hold about 16.1 per cent in the company. Some of whom have said to tendered their shares.

Shares of Vedanta closed at Rs 236.9 in the secondary market. Ahead of the open offer, many shareholders had picked up shares from the open market at a discount to cash in on the arbitrage opportunity.