Vedanta delisting update: Promoters get minimum shares required, but bids way above floor price

On the final day of the reverse book building process, Anil Agarwal’s Vedanta Group received bids for  137.46 crores shares at various prices as the mining major looked to go off the bourses. The promoters needed public shareholders to tender around 134 crore shares for the success of the delisting process. However, the majority of the shares were tendered between the price range of Rs 140-150 per share, Yash Gupta, Equity Research Associate, Angel Broking told Financial Express Online. This is higher than the floor price of Rs 87.25 per share that Vedanta has set. Shares of the mining major ended Friday’s trading session at Rs 122 apiece, surging over 3%.

The reverse book building process ended today. Data showed that stocks have been offered at a price ranging from anywhere between Rs 87.25 per share to Rs 999 per share. However, a large quantity of shares have been offered between the range of Rs 140-150 per share Excluding ADRs, the promoter group holds 52.33% of the total issued paid-up capital of the company while the public shareholders hold 47.67%.

“We expect that the discovered price may end up being much higher than the floor price and there could be a possibility of the promoters coming out with a counter offer,” said Yash Gupta, Equity Research Associate, Angel Broking. Vedanta Limited’s promoters need to raise their shareholding to 90% for the successful delisting. Gupta added that a counter offer from the promoters of Vedanta Limited needs to come within two days which can be further accepted or rejected by shareholders.

In case the delisting process goes through, on October 16, the discovered price or the exit price will be announced and whether the acquirers of the shares accept the same. In case of acceptance of the offer, on October 23, the company will proceed to pay the public shareholders. However, market participants believe that the delisting might not go through as LIC, which holds 6.37% stake in the company, might not tender shares below Rs 200 per share.