Vedanta hit a lower circuit of 10% at Rs 109.9 after the mining major on 10 October 2020 said that its delisting offer is deemed to have failed as per terms of delisting regulations.A total of 125.47 crore shares were validly tendered by public shareholders, which is less than the minimum number of offer shares required to be accepted by the promoters in order for the delisting offer to be successful. The promoters sought to buy out 169.73 crore shares or 47.67% stake held by the public to delist the firm.
Accordingly, the promoter group will not acquire any equity shares tendered by the public shareholders in the delisting offer and the equity shares of the company will continue to remain listed on the stock exchanges. Vedanta's American Depositary Shares (ADS) will continue to remain listed on the New York Stock Exchange (NYSE).
All equity shares tendered in the delisting offer shall be returned to the respective public shareholders, the company said.
In May 2020, Vedanta Resources (VRL) expressed its intention to voluntarily delist the equity shares of Vedanta from BSE and National Stock Exchange of India. The group believed that a delisting will provide the group with enhanced operational and financial flexibility in a capital intensive business. Later in June 2020, Vedanta received shareholders' approval for the delisting.
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.
On a consolidated basis, Vedanta's net profit declined 23.54% to Rs 1,033 crore on 25.89% fall in revenue from operations to Rs 15,687 crore in Q1 June 2020 over Q1 June 2019. The company's EBITDA contracted by 22.75% YoY to Rs 4,008 crore in Q1 June 2020 from Rs 5,189 crore in Q1 June 2019. EBITDA margin stood at 28% as on 30 June 2020.
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