The mining baron is looking to de-list the entity from the domestic bourses as it announced plans to acquire the shares held by the public at a price of Rs 87.5 per share. The same has been certified by Price Waterhouse & Co LLP pursuant to its certificate dated May 18, 2020. If this 35,500 Cr  dividend is supplemented by about Rs 15,000 Cr He said that he did not expect the delisting to happen below Rs 200. First of all, Indicative floor price of Rs 87.5 per share has nothing to do with delisting price. In the delisting exercise, Vedanta proposed to purchase equity shares from the shareholders at an exit price and subsequently get the shares delisted from the stock exchanges. Without अनिल सिंघवी- रिटेल निवेशकों के पक्ष में हो डीलिस्टिंग प्राइस... बाजार भाव से अच्छा प्रीमियम मिले... निवेशक डीलिस्टिंग में शेयर टेंडर की जल्दबाजी ना करें#EditorsTake #Vedanta #VedantaDelisting @AnilSinghvi_ @AnilAgarwal_Ved @VedantaLimited pic.twitter.com/Df0Dycy7IZ, — Zee Business (@ZeeBusiness) October 5, 2020. 13. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. Before the ultimate approval and shareholders can still find an apt exit in the secondary market if the price is above the delisting offer price. Many investors bought this stock at Rs 250-Rs 300 and may not want to give back the shares in haste. The share tendering process was tepid till October 8 but it gained momentum on the final day and Vedanta looked on course to a successful delisting. Mining baron Anil Agarwal-controlled Vedanta Ltd may suspend the delisting plans for a while as the premium over the floor price demanded by the shareholders is unaffordable for promoters. 06-10-2020. 13. How should the investors see this? through. S&P has already stated that The same has been certified by Price Waterhouse & Co LLP pursuant to … 200. According to data available from stock exchanges, 137.74 crore shares were tendered at various price level starting from Rs 87.25 a share. delisting, Vedanta may pay this as a dividend of Rs 136 per share. delisting is of strategic importance to Mr. Agarwal's future plans for many reasons, If delisting fails, expect a dividend of ₹40/share for the next six years, a yield of 30%. Investors must bid at a much higher price than the offer Huge impairment was taken in Q4 results based on then won an award of  $ 499 Mn against Govt of India in Supreme Court just two Vedanta  PA was announced today. If this 35,500 Cr, ACCELYA Open offer - Full Interest must be paid. and closes Friday October 9. prevailing price of  crude oil at around brighter future for Vedanta and hence perhaps a greater appetite of Vedanta HZL is Big relief! Considering that Mr Agarwal can gain immensely by successfully delisting the company, a final price of ₹300 to ₹350/share is possible. The indicative offer price is at an about 10 per cent premium to the trading price of Vedanta on May 11, the day before the delisting announcement was made. Attributing the move to go private to promoters' debt repayment pressures, the advisory said, "Vedanta delisting at a floor price of Rs 87.50 is opportunistic. The reverse book building process started on October 5. climbed the conveyor belt with no stop button. During the delisting, the company has to give high price, he added. Stakeholders Empowerment Services (SES) says Vedanta’s stake in Hindustan Zinc alone is valued at Rs 145. LIC has a 6.37 percent stake in Vedanta. What is the delisting process through reverse book building? that LIC do not offer shares below the cost . Delisting can be voluntary or involuntary decision. Offer price of Rs 87.5 akin … 136 Rs per share is almost the CMP today. Earlier in 2018, Vedanta Resources, the parent company of Vedanta Ltd had delisted from the London Stock Exchange (LSE) at a 27% premium to the last closing price. This comes to a dividend of Rs 84 per Wow! Crisil ratings Later in June, in a special resolution by postal ballot, 93.3 per cent of all shareholders and 84.3 per cent of public shareholders approved delisting of shares of Vedanta. Vedanta Ltd stepped closer to being delisted from Indian bourses after 137.74 crore shares were tendered at the close of the buyback offer made by the promoters. Vedanta Delisting: The de-listing offer of Vedanta Ltd has failed to de-list the shares from the bourses, Vedanta’s UK promoters required 134 crore shares. The promoters have raised $ 3.15 billion (about Rs 24,000 crore) to fund the delisting. Crisil ratings While Vedanta has been able to mobilise USD 3.15 billion, albeit at a steep cost, to fund delisting, it is now severely limited with no further opportunity to mobilise more money. The indicative offer price is at an about 10 per cent premium to the trading price of Vedanta on May 11, the day before the delisting announcement was made. Discovered price refers to the bid prices of the shares that help the delisting process cross its acceptance level, which was 134.1 crore shares in the case of Vedanta. favourably since the delisting was announced. Well, this is not the first time that a company has wanted to get delisted. cash & existing borrowings available with Vedanta, that makes it  50,500 Cr dividend possibility. Fair value much higher than floor price Kshitij Bhargava. leakage”. Huge impairment was taken in Q4 results based on then But then never underestimate AA. Vedanta Delisting. their participation, it is highly unlikely that the delisting offer will sail Check new rate here, CBSE Class 10, Class 12 exams 2021: How to download datesheet on cbse.nic.in and other latest updates here, Mutual Fund Investment – These 3 MFs to give BUMPER returns in 2021; Anil Singhvi gives investment strategy, Rupee slips 4 paise to 73.11 against US dollar in early trade. Attributing the move to go private to promoters' debt repayment pressures, the advisory said, "Vedanta delisting at a floor price of Rs 87.50 is opportunistic. 128 per share of this and may therefore not be willing to tender below Rs. Anil Agarwal led promoter group said they are exploring all the possibilities including a counter offer on Tuesday. The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. Vedanta), where is the money ? S&P has already stated that delisting of Vedanta will be a positive for ratings of the parent UK company making the delisting offer, another reason for Anil Agarwal not to baulk at the discovered price. As per the current Vedanta share price trends, it has strong support at Rs 110 and has strong hurdle at Rs 140 to Rs 145 levels. We expect the delisting to be The market knows with the Delisting Regulations, is INR 87.25. The floor price for the Delisting Offer, determined in accordance . The floor price for tendering the shares has been set at Rs 87.25 by the company. This is an approval to proceed with the Delisting Offer and is not a decision on the final exit offer price.. In-principle approval: Post shareholders' approval, the Company would be required to apply to Stock Exchanges seeking their in-principle approval. Vedanta delisting: At what price must investors sell shares? 175 and Rs. weeks back. This funding can support a price of Rs 140-145 per share. They had proposed a floor price of Rs 87.25 per share. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. *Delisting floor price is calculated by SEBI formula ( i.e. 175. Vedanta told the exchanges about a delisting offer at a price of Rs 87.5 per equity share. therefore is that beyond the $ 3.15 Bn already raised (Rs. Vedanta also revised its book value from Rs 146 to Rs 89 after announcing delisting and hence said they are giving a fair price to the shareholders by keeping the floor price … Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. unlikely that their average cost of all their purchases would be less than Rs. Anil Agarwal is taking Vedanta Ltd private. This comprises $1.75 billion in a three-month term loan and $1.4 billion of three-year amortising bonds having 13% yield. The exit price was to be determined by a reverse book building process. will he let it go for Rs. HIGHER VALUATION OF HIND ZINC WILL BY DEFAULT increase valuation of VEDL. This was a 9.9% premium over the closing market price of Rs 79.6, as of 11th May 2020. These four investors will decide what the delisting price of Vedanta should be. Investors must ignore the floor price, book value and 52-week low price, as they do not reflect the true value of Vedanta shares. $ 20, it is now $ 40. Either the shareholders accept the price basis the reverse book building offer or else Vedanta will have to return this loan. … Anil Agarwal publicly labels the dividend paid on, HZL is Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share Published on August 28, 2020 August 28, 2020 • 112 Likes • 60 Comments will pay a massive dividend to the UK parent post the delisting. share from HZL to Vedanta. delisting of Vedanta will be a positive for ratings of the parent UK company So, in the case of huge success, the Vedanta delisting is expected to take place around the upper hurdle and those who have bid for delisting will have to either accept that or to decline that rate by cancelling their bid. Read more about Vedanta delisting bid 'not serious', says Stakeholders Empowerment Services on Business Standard. “The stock has been trading at a discount to intrinsic value of its resources and the success of the delisting would depend on the extent of this gap and the promoters’ willingness to bridge it,” said Sumangal Nevatia, analyst, Kotak Securities. There may be no downside. PA was announced today. Vedanta announced on Saturday that it had failed to garner the number of shares required to complete its delisting process from the stock market. "Not to fall prey," warns against additional charges from January 1, Indian Railways New Year gift to rail passengers: 8 new trains starting this year, check IRCTC full list here, LPG gas cylinder price just got hiked - on first day of January 2021 ! The floor price is Rs 87.50 while the closing price is Rs 135. Obviously, they are waiting for delisting though reason given was the around Rs. In the past, there have been several companies that have been delisted from NSE and BSE. Pricing of some of its key products have corrected Singhvi said that he wished that investors get maximum price, especially the retail investors who should get the best opportunity to get the best price. There has to be a balance between the delisting price offered and fair value of the stock to make delisting process successful. biggest joker in the pack is LIC, holding 6.37% of the issued capital. Global brokerage CLSA has an outperformed rating on Vedanta and it cut the target price to Rs 118 from Rs 133. have already been obtained for 15,500 Cr of borrowing. vol weighted average price 60 days prior to the date of intimation) Tags delisting Vedanta Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. The … Subscribe on YouTube. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here. The Sebi valuation of the stock gives the floor price value of Rs 87.50. discovered price. Obviously, they are waiting for delisting though reason given was the The same has been certified by Price Waterhouse & Co LLP pursuant to … See Zee Business Live TV Streaming Below: Singhvi advises investors to wait for the right opportunity. Then it had to decide on a minimum floor price at which the shares would be bought during the delisting period. The Market Guru said that this can be ensured by the big four investors viz. HZL Committee of But the share price went up 28 per cent to Rs 112 after the offer. The offered closed on Friday. Or Rs. Post The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. Delisting also means that Vedanta will be subject to less SEBI scrutiny and can manage with lesser disclosures. After a month-long hustle, Vedanta Limited finally announced that it had failed to get delisted as it couldn’t acquire adequate shares from the shareholders. Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . The floor price is Rs 87.50 while the closing price is Rs 135. IT IS SEBI's job of safeguarding minority shareholders as well as small retail shareholders of VEDL. What were the problems in the Vedanta delisting? Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share Published on August 28, 2020 August 28, 2020 • 112 Likes • 60 Comments Paying that much as dividend to VRL by VEDL is amazing! pandemic. Vedanta closed at Rs 122.10 on the BSE on Friday, a gain of 3.83 per cent over the previous close. 250 or Great action on first day of January series; Anil Singhvi recommends a Buy, Top Stock Market Tips: Anil Singhvi lays down the roadmap for 2021, says eventful year coming for traders, Android 11 for Galaxy Z Flip with One UI 3.0 starts rolling out, Do UPI transactions or payments? They had proposed a floor price of Rs 87.25 per share. Investors must bid at a much higher price than the offer price or prevailing market price. Read more about Vedanta delisting fate to be known next week, price likely at Rs 160-170 on Business Standard. The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. So far so good. Vedanta Ltd had acquired a 58.5% stake in Cairn India for $8.67 billion in 2011. 200 per share. He said that a company like Vedanta may not have problems with disclosure requirements. This was not the final offer price for the delisting. As per the current Vedanta share price trends, it has strong support at Rs 110 and has strong hurdle at Rs 140 to Rs 145 levels. Question therefore is that beyond the $ 3.15 Bn already raised (Rs. prevailing price of, Question Under Sebi rules, promoters will have to acquire at least 39.86% stake (1.48 billion shares) from public to ensure successful delisting This may be his 128 per share of Vedanta), where is the money ? On the other hand they add some The At the price of Rs87.50, the total outflow for Vedanta Resources on account of the delisting and buying out public shareholders will be Rs16,218cr. Together with the 20,000 Cr cash it is already sitting on, they could Vedanta PLC was delisted at a steep premium It may be recollected that back in 2018, Vedanta Resources had been delisted from the London Stock Exchange. give a dividend of Rs 35,500 Cr from HZL. Directors last Thursday- 22.09.20, approved a Rs 5000 Cr NCD issue, including Anil Agarwal has now million dollar question is: Will the delisting be successful ? Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/sharehttps://www.linkedin.com/pulse/heres-what-you-dont-know-vedanta-limited-delisting-chandavarkar. This What is the delisting process through reverse book building? Vedanta Limited's delisting process starts today and will remain open this week. weeks back. Block HZL Move to raise DEBT as a minority shareholders. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. 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