You are here: Home » Companies » News
Business Standard

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%

Vedanta  | Delisting | stock market

Samie Modak  |  Mumbai 

Vedanta Resources

Over 377 million shares were tendered in the voluntary open offer launched in Anil Agarwal-owned After a failed bid, promoter 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 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 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 07 2021. 19:55 IST