Post delisting of the Company, the remaining Public Shareholders holding Equity Shares may tender their Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such a case, the Promoter shall accept the shares tendered at the final exit offer price. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here Get more India News and Business News on Zee Business. Anil Agarwal's Vedanta Limited announced on Saturday that its delisting offer had failed due to the requisite number of shares not being offered by shareholders. The floor price for the Delisting Offer, determined in accordance. After the success of the Delisting Offer and payment of consideration to the Public Shareholders who have tendered their Equity Shares, the Company will make the final application to the Stock Exchanges. The Promoter has the discretion either to accept or reject the final exit offer price discovered pursuant to the reverse book building process. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. no. Below is the timeline on how the process will play out. The mining major, led by billionaire Anil Agarwal, had … The final exit offer price will not be decided through this process. Vedanta Limited announced delisting plans in May this year. Yet, billionaire Anil Agarwal needs the oil refiner more than ever. The output from its … The final exit offer price is determined pursuant to the reverse book building process prescribed in the Delisting Regulations. While Vedanta has been able to mobilise $3.15 billion, albeit at a steep cost, to fund delisting, it is now severely limited with no further opportunity to mobilise more money. Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. LIC, which held 6.37% in Vedanta, tendered all its shares at Rs 320, a 267% premium over the floor price of Rs 87.25, which upset Vedanta's calculations. Vedanta’s UK-based promoters have made an open offer to delist the company shares from the BSE and the NSE. If the Delisting Offer is successful (discussed above), the Equity Shares will be delisted from the Stock Exchanges and the Company will become an unlisted public company. How will the final offer price be determined for the Delisting? The floor price for the Delisting Offer, determined in accordance with the Delisting Regulations, is INR 87.25. The Vedanta Group (the "Group") has been pursuing a process of corporate simpli cation for several years, including the merger of Sterlite with Sesa Goa to form Sesa-Sterlite (subsequently renamed Vedanta Limited) in 2012, the merger of Cairn India with the Company in 2016, and the delisting of Vedanta Resources Plc (subsequently renamed Vedanta Resources Ltd) in 2018. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. What will happen if the Delisting Offer fails? Am I mandatorily required to participate in the Delisting Offer? Asian ADRs Move Lower in Thursday Trading, Asian ADRs Climb Higher in Tuesday Trading. As per the Delisting Regulations, a company is required to obtain (a) the approval of its board of directors; and (b) the approval of its shareholders by way of special resolution through postal ballot. The meeting is scheduled for May 18. As mentioned above, the final exit offer price will be determined pursuant to the reverse book building process as specified under the Delisting Regulations. Exchanges in accordance with the Delisting Regulations. Copyright © 2018 Vedanta limited. FAQS ON THE PROPOSED DELISTING OF VEDANTA LIMITED 5 | Page success of the Delisting Offer along with the final exit offer price; or (b) failure of the Delisting Offer. Earlier, … In case of failure of the Delisting Offer. The company’s dividend distribution policy says normal dividend received from Hindustan Zinc shall be passed on to its shareholders in entirety. Vedanta’s delisting process will open on October 5. Once the Delisting Offer is successful, the Equity Shares will be delisted from the Stock Exchanges and the Company will become an unlisted public company. Remote e-voting commences at 9:00 A.M.(IST) on Tuesday, May 26, 2020 and ends at 5:00 P.M. (IST) on Wednesday, June 24, 2020. Neither the IOP nor the floor price is the final exit offer price for the Delisting Offer. When is the Delisting Offer deemed to be successful? In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources 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. The floor price for the delisting is calculated in accordance with the Delisting Regulations and the Public Shareholders are required to bid at a price either at or above the floor price during the reverse book building process. 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. Shares of Vedanta Ltd dropped 2.2% to Rs 160.15 apiece after the announcement. Vedanta Limited is one of the leading mining companies based in India. They had announced plans of delisting its shares. Now Vedanta does not have to share the dividends from Hindustan Zinc with minority shareholders. The final exit offer price shall be determined as the price at which Equity Shares accepted through eligible bids, that takes the shareholding of the Promoter (along with the persons acting in concert) to at least 90% of the paid up equity share capital of the Company, excluding the Equity Shares which are then held by a custodian and against which ADS have been issued. Vedanta Delisting FAQs: Is it necessary to participate, what happens in case of failure? The final exit offer price will not be decided through this process. As the delisting efforts of the company became unsuccessful, the equity shares tendered by the public shareholders will be returned by october 23, 2020. Reverse book building is a mechanism to determine the share price for delisting of a stock. 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