Vedanta delisting: 73.76 crore shares tendered; another 60 crore needed on Friday to delist firm

By: |
October 8, 2020 8:45 PM

A total of 134 crore shares or 86 per cent of 169.73 crore shares held by public shareholders need to be tendered for the delisting to succeed.

Vedanta closed at Rs 117.60 on the BSE on Thursday, a loss of 4.85 per cent over the previous close. The stock has taken a beating since Wednesday on apprehensions over the delisting. The stock had fallen 10.4 per cent on Wednesday.

With just one day remaining for the close of the reverse book building exercise, just over 73.76 crore shares of Vedanta Ltd have been tendered in the buyback offer made by promoters to delist the company.

A total of 134 crore shares or 86 per cent of 169.73 crore shares held by public shareholders need to be tendered for the delisting to succeed.

According to data available from stock exchanges, 73.76 crore shares have been offered at price ranging from Rs 87.25 to Rs 999 apiece. Over 25 crore of these shares were tendered in the price range of Rs 135 to Rs 145 per share. Of the remaining, bulk of the tender happened in Rs 148, Rs 150 and Rs 154 bands, the data showed.

On Thursday 56.6 crore shares were offered. Of the 73.76 crore shares tendered, 15.5 crore or 21 per cent were offered at below Rs 140 and 51.1 crore (70 per cent) between Rs 140 and Rs 160. Around 7.1 crore (9 per cent) shares were offered at more than Rs 160 apiece.

Vedanta promoters are seeking to buy 169.73 crore shares or 47.67 per cent stake held by the public to delist the firm.

The company needs around 60 crore shares in one day for the delisting to succeed.

The reverse book building process started on October 5. The closing date for the offer is October 9 and the last date for the announcement of the discovered price and the acquirer’s acceptance or rejection of the discovered price is October 16.

Vedanta closed at Rs 117.60 on the BSE on Thursday, a loss of 4.85 per cent over the previous close. The stock has taken a beating since Wednesday on apprehensions over the delisting. The stock had fallen 10.4 per cent on Wednesday.

The promoters have raised USD 3.15 billion (about Rs 24,000 crore) to fund the delisting. This funding can support a price of around Rs 140 per share.

According to stock exchange data, the maximum price sought for tendering shares is Rs 999 apiece.

The final exit offer price will be decided on the basis of bids placed by public shareholders, which should take the shareholding of promoters to at least 90 per cent of the paid up equity share capital of Vedanta.

Industry sources said Vedanta may not be able to raise any more money to fund the delisting exercise as the lenders have put a cap on any further mobilisation.

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