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Vedanta declines after promoters announce open offer to buy up to 10% stake

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Vedanta fell 2.94% to Rs 176.70 after promoter, Vedanta Resources, announced an open offer to buy upto 10% of the company at Rs 160 per share.

The promoters of Vedanta on Saturday announced an open offer to acquire 37.2 crore equity shares, representing 10% equity stake in the company, at Rs 160 per share. The open offer price is at 12.1% discount to Friday's closing price of Rs 182.05.

As of 30 September 2020, promoters held 50.14% stake in Vedanta.

In October 2020, Vedanta's voluntary delisting bid failed after it could not get the minimum number of bids required from its minority shareholders to take it private. The promoters sought to buy out 169.73 crore shares or 47.67% stake held by the public to delist the firm.

Vedanta, a subsidiary of VRL, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia.

The diversified natural resources company posted a 62% decline in consolidated net profit to Rs 824 crore in Q2 September 2020 as against Rs 2,158 crore in Q2 September 2019. Net sales during the quarter fell 4.3% YoY to Rs 20,804 crore.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, January 11 2021. 10:38 IST