Delisting Vedanta’s shares approved by shareholders

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Billionaire Anil Agarwal controlled Vedanta Limited has received approval from the shareholders to delist the company’s shares from the Indian stock exchange informed by the market regulator. 82.2 % of shareholders voted in favor of delisting the shares of the company showed in the postal ballot shares. To approve the delisting process, it requires the majority of the shareholders to vote in favor of the special resolution or at least twice the number of votes cast against it. Public shareholders have a 49% interest in the company and the rest of the stake is held by Anil and his family members. Last month the Vedanta group has announced their intention to take company private with an expressive offer price of Rs 87.5 per share offered at a 21% discount to the current market price.

Initially, the proposal has faced much criticism from the minority shareholders regarding the price offered. Last month Mint had reported that the majority of the Institutional investors were unhappy with the share price of 87.5 that is offered by the promoter. The price offered by the promoter is expressive and the final price for the delisting will be determined through the book-binding process which could be higher than the one offered by the promoter. Vedanta Ltd was the first major listed company that announced the delisting of the shares of the company in the middle of the COVID 19 pandemic. After that more companies have announced such plans. The previous week, Adani power Ltd said that they will offer to shareholders a minimum of 33.82 per share to delist the company. On June 5 IT services firm Hexaware Technologies have announced that they are planning to delist at an offer price of Rs 285 per share.

Vedanta Resources Ltd (VRL) which owns 50.1 % of shares of Vedanta limited invited to acquire all of the balance 46.9 percent shareholding held by the public and delist the company. For the approval of the delisting of shares, Vedanta needs the approval of at least 66.7 percent of the minority shareholders. The approval from the minority shareholders has been received through e-voting.

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