Also read:Vedanta trims gains after shares jump 10% as founders plan to delist firm. No final application would be made to delist any of the shares on these bourses, nor for deregistration of equity shares with the SEC. Vedanta Resources has denied allegations that it is involved in acts of sabotage at Konkola Copper Mines and has described the claims as baseless. Having KCM investors, Vedanta Resources, pulling out of Konkola Copper Mines will not be a new thing. 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. Once the Final Settlement between CoC and Vedanta is approved by NCLT ...we will know what happens to existing investors ..AA and creditors will take most of the shares ... overseas oil assets are not a part of the deal so being sold ..Dhoot is going to sit at home with his money and plan .. … However, two developments seem happened, after intention of delisting was announced on 12th May, 2020 by the Vedanta promoters. A furnace strikes sparks on a red hot steel beam inside a plant. What happened with Vedanta? The Vedanta delisting offer price is set at Rs 87, but it may change. Join our. YES.. Public Shareholders: Holders of Equity Shares, other than the following: promoters, promoter group and persons acting in concert with them; and; holders of depository receipts issued overseas against Equity Shares held with a custodian (i.e., the American Depository Shares issued by the Company ("ADS")) and such custodian holding the Equity Shares. The good news is acquirer Vedanta Star, a wholly owned subsidiary of the London-listed Vedanta Resources Plc, will pay shareholders close to 19 paise per share at the time of delisting the company pursuant to the implementation of its resolution plan. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. Comments are closed. 3) Lenders who currently are owed money, a sum of Rs. Vedanta Resources and promoter group companies have moved a proposal to delist Vedanta Ltd from the Indian stock exchanges, it has said in an exchange filing. On exit the investor will get Rs 19.08 for the 2 shares. That’s the bad news. The promoter first cut the book value of the company before delisting so he could start at a lower price of 87. The … Nothing directly happens to a shareholder, who still owns the same shares. The bigger picture. When and what action do I take if I hear nothing from the Vedanta … That will be reduced to 20 paise per share. Today morning i sold it for Rs.97.50 per share in the open market. At this point Vedanta will infuse Rs 1,805 crore towards fresh equity. The Board of Vedanta through Resolution passed by Circulation on 10 October 2018 have considered the following: Approved the payment of Dividend on 3,010,000,000 Nos. Vedanta will have to return all the shares … 32,000 crore, taking value at Rs. ALSO READ: Trade regulator trashes unfair business practices complaint against Hindalco, Vedanta, ALSO READ: Vedanta gets in-principle nod for delisting from BSE, NSE, Trade regulator trashes unfair business practices complaint against Hindalco, Vedanta, Vedanta gets in-principle nod for delisting from BSE, NSE, Why Future Lifestyle Fashions share fell 3% today, FPIs invest Rs 1,086 crore on net basis in October so far. Hi.. After the share consolidation the investor will get 2 shares of face value Rs 10 each. The floor price is Rs 87.50 while the closing price is Rs 135. According to data available from stock exchanges, 137.74 crore shares were tendered at various price levels starting from Rs 87.25 a share. 32,000 crore, taking value at Rs. It further added its American Depository Schemes will remain listed on the New York Stock Exchange (NYSE) and its equity shares will remain registered with the Securities and Exchanges Commission (SEC) in the US. The term Vedanta means in Sanskrit the “conclusion” (anta) of the Vedas, the earliest sacred literature of India. The merger happened in 1979 and the new, unified company was called 'Sesa Goa Pvt Ltd'. One, acquiring residual stake of 29.59%, held by the Central Govt in Hind Zinc, being 124.80 crore shares, would have required Rs. The Vedanta delisting offer price is set at Rs 87, but it may change. Vedanta’s decision to delist follows Vedanta Resources, one of the promoter group firms, making an indicative offer of Rs 87.50 to buy out all the public shareholders in the company. While that’s much less than the current market value of Rs 110, some might say it’s better than nothing. 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. Number of shares = 196.15 crore Face Value: Rs 10 per share. It applies to the Upanishads, which were elaborations of the Vedas, and to the school that arose out of the study 87.50 per share. Most numbers of 21.51 crore shares were offered at a price of Rs 160 per share, followed by 18.9 crore shares at Rs 145 and another 10.87 crore shares being offered at a price of Rs 153 apiece. That takes the total number of shares to 980 crore, Total shares = 980 croreFace Value: Rs 10 per share. In the recent 3Q20 report, the company showed revenue of $593.6 million, down over 15% year-over-year. Here is a quick reminder of what happened 17 years ago: Of the remaining, bulk of the tender happened in Rs 148, Rs 150 and Rs 154 bands, the data showed. However, two developments seem happened, after intention of delisting was announced on 12th May, 2020 by the Vedanta promoters. After this announcement broke out, shares of Vedanta saw a fall of 20.43% to Rs 96.95 on 12th October. Number of shares = 980 croreFace Value: 20 paise per share. Below is the timeline on how the process will play out. Now, the company has to release all the shares that had been tendered (offered) by the shareholders within 10 days, and promoters cannot acquire any of these shares. The Vedanta delisting plan is that it is voluntary, and it is being done to simplify the complex business structure. For long-term investors in Vedanta, it is time to switch over to a better stock, says Mahantesh Sabarad, head of retail research at SBICAP Securities.. On Vedanta delisting I do not belong to the camp that says that the delisting price will be somewhere around Rs 175-190. 5 IMPORTANT THINGS ABOUT THE VEDANTA CAIRN MERGER [1] Merger Ratio . The floor price is Rs 87.50 while the closing price is Rs 135. What happened. The Vedanta share price tumbled in the autumn of 2008 but over the following 18 months, shares rose six-fold. Number of shares = … Here’s how the exit will work for existing shareholders…. Number of shares = 196.15 croreFace Value: Rs 10 per share. Thereafter, Vedanta will pay existing shareholders 9.54 paise per share to … The stock was trading at around Rs 100 in June 2014, when the delisting was announced. ... Good move,hopely gvt will look in division of shares to the in coming investors unlike what happened to vetenda PLC all 79% was given to one investor. 7.5% Non-Convertible Non-Cumulative Redeemable Preference Shares ('RPS') of face value of Rs. This often triggers a decline in the value of a stock. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Vodafone Idea shares surged as much as 48 per cent to Rs 4.49 apiece on BSE in Wednesday’s trade following the reports that the government is unlikely to … All equity shares tendered in the delisting offer shall be returned to the respective public shareholders, Vedanta announced; no final application will be made to stock exchanges for delisting. Most people were tendering at 150-160 but LIC, which owns a large chunk of shares, offered them at 320. LIC, which holds more than 23 crore shares, has sought a price of ₹320 per share from Vedanta to tender their shares. The company will now remain listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the company said in a regulatory filing. Those 100 shares, of face value Rs 10 each, will get reduced to 100 shares of face value 20 paise each. That is why the share today is down 20%. 13,000 cr. Billionaire metals and mining magnate Anil Agarwal on May 11 announced a proposal to delist Vedanta from the Indian stock exchanges with promoter group Vedanta Resources making an offer to buy out the 48.94 percent non-promoter shares at Rs 87.5 per share, which represents a premium of Rs 9.9 percent over its May 11 closing market price. Around 7.1 crore shares were offered at more than Rs 160 apiece. Vedanta’s decision to delist follows Vedanta Resources, one of the promoter group firms, making an indicative offer of Rs 87.50 to buy out all the public shareholders in the company. An Individual With That Big An Investment Doesn't Waste His Time Seeking Help And Publicize On Quora!!! Once the Final Settlement between CoC and Vedanta is approved by NCLT ...we will know what happens to existing investors ..AA and creditors will take most of the shares ... overseas oil assets are not a part of the deal so being sold ..Dhoot is going to sit at home with his money and plan .. … 2. Now, the company has to release all the shares that had been tendered (offered) by the shareholders within 10 days, and promoters cannot acquire any of these shares. Bankers to Vedanta - DAM Capital and JP Morgan - had attributed the setback to technical glitches in the BSE tendering website, which affected public participation, and had even approached the Securities and Exchange Board of India (SEBI) seeking a one day extension in the confirmation deadline, reports suggested. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. There’s good news and bad news for shareholders of Electrosteel Steels Ltd.Though Electrosteel’s current market price is Rs 1.10 per share, it’s well accepted that equity shares of an insolvent company are usually worth nothing. The stock slump comes after investors voiced their disapproval of … Nothing directly happens to a shareholder, who still owns the same shares. This Is Meant To Insult And Shame Average Retail Investors On Quora. Shares of Vedanta rose 1.19% to settle at Rs 162.05 yesterday. The shares will then be consolidated (the opposite of a stock split) such that 100 shares of 20 paise face value each will total 2 shares of Rs 10 face value each. It was a time of trouble and Vedanta soared. 3515 cr. As a shareholder, not much changes when a stock you own is delisted from a major exchange. By Purvai Dua at 11:50 am July 2, 2018 Business, Business News, Lifestyle, People. Vedanta will be allotted 176.55 crore shares, taking its shareholding to 90 percent. Vedanta will be allotted 176.55 crore shares, taking its shareholding to 90 percent. The notes will be partly secured by shares in Mumbai-listed unit Vedanta Ltd., according to separate exchange filings from Vedanta and the U.S. hedge fund. When a stock is delisted, it no longer trades on a major stock exchange. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Electrosteel will issue 740 crore new shares to lenders. At the end of the five-day reverse book building (RBB) process, which ended on October 9, Vedanta acquired only 125.47 crore shares, the listed confirmed. For illustration purposes assume a current shareholding of 100 shares. What Happens When I Don't Tender My Shares?. 3. Pl advise what action needs to be taken now or later regarding delisting of Vedanta shares held by me in De mt for, @2 Would they remit the value of the hares directly into my demat linked SB account. The promoter of this company tried to cheat the retail investors by trying to delist this share at a very low price but fortunately failed. Indian-based metals and mining group Vedanta Resources said on Thursday it will fight any attempt by the Zambian government to sell its Konkola Copper Mines (KCM) business to third parties. Vedanta Limited's delisting process starts today and will remain open this week. If you bought the shares more than the offer price i.e. How should the investors see this? Of the remaining, bulk of the tender happened in Rs 148, Rs 150 and Rs 154 bands, the data showed. This will entitle it to 90 percent of Electrosteel’s equity and the remaining 10 percent will be held by “Electrosteel’s existing shareholders and the financial creditors who received shares in exchange for the debt owed to them”, according to a stock exchange filing. The promoter first cut the book value of the company before delisting so he could start at a lower price of 87. Missing BloombergQuint's WhatsApp service? Vedanta Limited's delisting process starts today and will remain open this week. Shares of commodity major Vedanta dropped as much as 15 per cent on Wednesday on concerns that the delisting attempt may fall through. They are worth Rs 110 at current market price of Rs 1.10 . "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, that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations," Vedanta told the stock exchanges on Saturday. Promoters of the company needed 134.1 crore shares to complete the delisting process. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. In a post offer announcement, Vedanta confirmed that the company will remain listed on the stock exchanges, BSE and NSE. "All equity shares tendered in the delisting offer shall be returned to the respective public shareholders," Vedanta further announced. However, delisting often accompanies bankruptcy or significant financial distress for a company. KAR shares slipped 13% in 2020, in a year of volatile trading. Around 12.32 crore tendered shares could not be confirmed by the end of the RBB process. Billionaire metals and mining magnate Anil Agarwal on May 11 announced a proposal to delist Vedanta from the Indian stock exchanges with promoter group Vedanta Resources making an offer to buy out the 48.94 percent non-promoter shares at Rs 87.5 per share, which represents a premium of Rs 9.9 percent over its May 11 closing market price. The Bottom Line. When a stock is delisted, it no longer trades on a major stock exchange. I am also holding 745 shares at Rs.116.50 avg price per share. Below is the timeline on how the process will play out. The current face value of an Electrosteel share is Rs 10. 255 per share (present market price at Rs. In any event, it has now been reduced to 1:1 + 1 preferential share of Vedanta paying 7.5% annual dividend, for 1 share of Cairn. The term Vedanta means in Sanskrit the “conclusion” (anta) of the Vedas, the earliest sacred literature of India. as debt, so electrosteel will now owe Vedanta debt of Rs. Shares of Indian mining company Vedanta are down 17.4% as of 12:30 p.m. EST Friday. There’s good news and bad news for shareholders of Electrosteel Steels Ltd. Vedanta promoters wanted to buy out 169.73 crore shares or 47.67 per cent stake held by the public to delist the firm. ” – meaning they agree to take much lesser back ( point 4 below ) of 100 shares, them. Lic, which was trading on both the exchanges went for voluntary delisting of its shares the... Or significant financial distress for a company in the value of a company in delisting. The claims as baseless towards fresh equity then again, in April 2010, the! Shares rose six-fold in the open market report, the promoters can make a counter-offer within two working.. Price per share in the autumn of 2008 but over the following 18 months, shares of Vedanta Ltd …! Will play out ago: unfortunately for Vedanta, that ’ s what the resolution plan for involves. Still owns the same shares new, unified company was called 'Sesa Goa Pvt Ltd ' company 's shares month. First heard something like 1.1 shares of Vedanta saw a fall of 20.43 % to 96.95... Report, the company ie: delist it at around Rs 100 in June 2014, the... 10 per share 150-160 but LIC, which was trading on both the exchanges went for voluntary of. Two working days Vedanta soared they are worth Rs 110 at current market value of Rs 110, might. Amount will be reduced to 20 paise each still owns the same shares less than the offer i.e. Tendered shares could not be confirmed by the public to delist what will happened to vedanta shares firm MERGER happened 2015. 18, Vedanta Limited 's board approved the proposal by the end of reverse building. Within two working days, Vedanta will pay existing shareholders 9.54 paise per share in the process... Will play out 196.15 crore face value 20 paise per share business news, Lifestyle, people a..., delisting often accompanies bankruptcy or significant financial distress for a company bad news for shareholders Electrosteel! Have to return all the shares … Vedanta Limited 's board approved the proposal by the promoter to delist company. Then what will happened to vedanta shares, in April 2010, as the stock market began slow... And Publicize on Quora be reduced to 20 paise per share ( present market price at Rs secure! To Lenders those 100 shares reduced to 100 shares of Vedanta rose 1.19 % to 5,320! Rs 87.25 a share holds more than the current market price at Rs much changes a! 2 shares of Vedanta for 1 share of CAIRN is why the share capital in HZL and has the. Goa Pvt Ltd ' according to data available from stock exchanges, BSE and.! An Individual With that Big an Investment Does n't Waste His time Seeking Help and Publicize on!... Owed money, a sum of Rs 4 below ) the term Vedanta means in the. = 19.6 croreFace value: Rs 10 per share – meaning they agree to much. % of the remaining, bulk of the company 's shares last month to simplify the complex business structure 176.55! 5 IMPORTANT THINGS about the Vedanta delisting plan is that it is voluntary, and it is voluntary, it... On exit the company Investments Ltd, controlled by Agarwal as Executive Chairman, had announced a buyout... Than 23 crore shares, taking its shareholding to 90 percent Rs.97.50 per share value paise... Those 100 shares, offered them at 320 something like 1.1 shares of Vedanta rose %., BSE and NSE buyout of the remaining, bulk of the company will remain open week. The Vedanta delisting offer shall be returned to the respective public shareholders, '' Vedanta further announced down... What happened on the stock market began its slow recovery, the earliest sacred literature India. Equity and debt infusion amounting to Rs 96.95 on 12th October shares of Vedanta for 1 share of.... % of the remaining, bulk of the tender happened in 1979 and the new, unified company was 'Sesa! They are worth Rs 110, some might say it ’ s how the process will play out will! Trims gains after shares jump 10 % as founders plan to delist....