The spokesperson also refused to comment on the likely delisting price or if the group could raise more money to … There is a rider, though. How much holding do they control together? On NSE, it tumbled 20.68 per cent to close at Rs 96.65. Sharp Insight-rich, Indepth stories across 20+ sectors, Access the exclusive Economic Times stories, Editorial and Expert opinion. The total public holding was in the vicinity of 169.73 crore shares. Photo: Reuters/Danish Siddiqui/Files. The rules say that the offer must have closed at the close of the trading hour. Home / Business / Vedanta plunges as delisting plan fails The stock tanked 23 per cent to Rs 94 on BSE. The shares of Vedanta Limited are listed on the BSE Limited and the National Stock Exchange in India and its American Depository Receipts are listed on the New York Stock Exchange. Download The Economic Times News App to get Daily Market Updates & Live Business News. Shares of Vedanta on Monday plummeted nearly 21 per cent after the company’s delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders. If the reverse book building process is not extended, then as per the last available data Vedanta Resources Ltd., the parent company making the delisting offer, will have insufficient shares to cross the 90% shareholding threshold and the delisting will have failed. Vedanta Ltd's delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders, forcing the company to look for options to extend the buyback period by a day. Shareholders then communicate their bids through the trading members (brokers, to be precise). The offer made by the promoters to delist the shares of Vedanta Ltd. has fallen through. Shares of Vedanta were down over 18 per cent at Rs 99.8 at noon on Monday after the failure of the delisting offer. Officials, however, said the group's failed attempt at delisting Vedanta Ltd has come under the scanner of stock exchanges, regulatory authorities and the government after their public statements claimed that the delisting "would have resulted in FDI (Foreign Direct Investment) inflow of over USD 3.15 billion into the Indian economy and helped boost growth between 0.4 per cent and 0.8 per cent through … Vedanta hit a lower circuit of 10percent 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. But it turned topsy-turvy later in the day as the evening approached. On October 9th, the bidding process was supposed to close at the end of market hours, but the shareholders were facing certain technical problems. In a regulatory filing, Vedanta said its buyback offer is deemed to have failed as […] When contacted, Vedanta spokesperson refused to comment on the debt position or impact on revenues due to the shutdown of copper and iron ore businesses. But delisting a company is a lengthy and difficult process. Let's reshape it today, Hunt for the brightest engineers in India, Read Stock Insights by ET for a quick analysis. At the moment, the only thing that is known officially is that the delisting offer has failed. The failure of the delisting offer is sentimentally negative for Vedanta. According to a Business Standard report, Vedanta Resources founder Anil Agarwal and the management committee of Vedanta Limited are scheduled to meet Monday (October 12) to discuss the next course of action after the latter failed in its delisting attempt on Friday. Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. The delisting was sought to be done through a process of ‘reverse book-building’. Delisting failure: Vedanta execs, promoters to mull future action on Monday DU cut-off list 2020 of top 8 Delhi University colleges: Subject-wise list Delhi coronavirus update: 48 deaths take toll to 5,740; total cases past 306,000 In this instance, at least 134.12 crore shares are required to be validly tendered for the delisting offer to be declared successful. With institutional investors such as the LIC quoting over Rs 300 a share, the final discovery price would have been far higher than the offer price announced by the promoters. Reports have stated that a technical glitch in the bidding process could have caused a wrong result . J.N. Tomorrow is different. Mumbai: India lost out on a probable $ 3.15 billion in FDI investments from the failure of Vedanta's delisting process. After all, public shareholders tendered 137.1 crore shares. Vedanta shares plunged as much as 20 per cent in mid-morning deals on Monday due to the miner's failure to buy back shares and delist itself, compelling it … “If you have put in a bid, why haven’t you confirmed it?” asks Gupta. After the failed delisting, shares of Vedanta Limited tanked 22% on Monday to trade at Rs 94 per share. A man walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 6, 2020. A bird flies past the logo of Vedanta installed on the façade of its headquarters in Mumbai, January 2018. The de-listing offer of Vedanta Ltd has failed, according to the data available on the stock exchange website. What went wrong? The failed delisting of Anil Agarwal’s Vedanta Ltd has narrowed the refinancing options for its parent company Vedanta Resources, raising risks over the … Vedanta chairman Anil Agarwal, in an interview with CNBC-TV18, said the company will go for a counteroffer for the buyback of shares "if need be". So, you see, there are considerable benefits. There are multiple ways to read this, even if each individual perspective doesn’t give the full picture. Vedanta Ltd's delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders, forcing the company to look for options to extend the buyback period by a day. The question now being asked here is whether the technical glitch was the only reason behind any non-confirmation of bids. Non-serious bidders are a dime a dozen in any bidding exercise, especially when it comes to project tenders – India’s power sector is a classic example. The story was playing out fairly on the expected line for the most part of the final day of the closure of the offer, i.e. Had the delisting offer gone through, it would have helped the investor community make a reasonably satisfactory exit from Vedanta. Till the final lap, it was assumed that the Vedanta offer would sail through. Shares of Vedanta on Monday plummeted nearly 21 per cent after the company's delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders. The main reason for the failure of the delisting process of Vedanta Ltd is not clear. This price is then widely communicated to the shareholders. The BSE on October 9 evening showed 137.74 crore shares, out of a total 169.73 crore shares held by the public, to have been offered for sale to promoters, larger than the threshold of 134.12 crore. Photo: Reuters/Francis Mascarenhas/File photo. 15 By 7:35 pm, the BSE website indicated that only 125.47 crore shares were confirmed to be tendered. Once this buy-back price is arrived at, all bids or offers equal to or below this price will be accepted. Why follow tips? Not because the offer fell through, which would be fine. Your Reason has been Reported to the admin. That means that 12.31 crore shares weren’t confirmed. It is evident that corporate governance issues are weighing heavily on Vedanta’s valuations MUMBAI : Shareholders of Vedanta Ltd saw their hopes dashed as … Vedanta Ltd. ’s delisting failed as 12.3 crore shares offered were deemed invalid bids by custodians. India Inc has a number of examples of delisting offers having met with failure and thus this is nothing new or shocking. The offer becomes successful only if a minimum number of shares are tendered. But technical hiccups earlier in the day, on account of which some shareholders reportedly faced trouble in tendering shares, forced the authorities to extend the bidding time till 7 pm. Gupta, the co-founder of the proxy advisory firm Stakeholder Empowerment Services, is surprised. In the end, the non-confirmation of a sizable number of bids appears to have poured cold water into the whole delisting exercise. The company's promoter Vedanta Resources deemed the delisting offer to have failed after lower than required shares were offered. Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp. Days Trial. Vedanta’s shares tumbled after its delisting bid failed, bringing back into focus its undervaluation. A final answer should be given on this tale of technical glitches and unconfirmed bids. The buy-back price will eventually be determined after the offer closes. Vedanta chairman Anil Agarwal, in an interview with CNBC-TV18, said the company will go for a counteroffer for the buyback of shares "if need be". Such bidders enter the fray just to scuttle the whole process. Only at that level, the promoters’ holding could breach the 90% level as required by the rule in a delisting exercise. Due to the failure of the delisting process, Vedanta would not acquire any shares from shareholders. The BSE on October 9 evening showed 137.74 crore shares, out of a total 169.73 … The issue with Vedanta though, is that the way the process played out has raised some questions. What We Should and Shouldn’t Take Away from Vedanta’s Delisting Failure, indicate that capital markets regulator SEBI may ask the BSE to probe and get to the bottom of the matter. This will alert our moderators to take action. During the day, it tanked 23 per cent to Rs 94. And these remained unconfirmed despite a four-hour extension. Then it had to decide on a minimum floor price at which the shares would be bought during the delisting period. Shareholders were waiting for the dividend announcement from Vedanta after the company's delisting process failed this month. Limited and its indirect subsidiaries namely , Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, (collectively to be referred as “Acquirers” ) that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations . Vedanta decided on a low price of ₹87.50. The floor price for tendering the shares has been set at Rs 87.25 by the company. Here's a FAQ regarding the delisting process: how is the exit price determined, what happens in case of failure, etc. Vedanta Ltd's delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders, forcing the company to look for options to extend the buyback period by a day. For reprint rights: Why Sebi needs to probe Vedanta delisting fiasco, Twist in Vedanta delisting after LIC raises cost, Vedanta Delisting: Share tendering dismal so far, Vedanta delisting fails; company to return all the shares tendered, Vedanta delisting: Anil Agarwal may come up with a counter offer, Inciting hatred against a certain community, 15 Does it reflect a sense of confidence in the company by the shareholder community? Days Trial This is nothing new or shocking considerable benefits 's delisting process, would... Shareholders then communicate their bids through the trading members ( brokers, to be precise ) the of. Regulator – to give a final answer the close of the delisting offer is negative. A wrong result waiting for the brightest engineers in India, March,! And difficult process it would have helped the investor community make a reasonably satisfactory exit from Vedanta Ltd. rights... 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