Shares of Vedanta Ltd plunge post delisting approval

The shares of the mining company, Vedanta Limited, tanked more than two per cent today after the company announced that its board of directors has approved a proposal for delisting the company from Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The company informed via an exchange filing made on Monday late evening that the proposal have been approved taking into consideration, a due diligence report dated May 18, 2020 by SBI capital markets. The company added that it will take the approval of its shareholders through special resolution via postal ballot and e-voting.

Vedanta Ltd has also said that it has received a letter on Monday from Vedanta Resources Limited (VRL), which states that the floor price of the delisting proposal is Rs 87.25. The letter was accompanied by a certificate issued by Price Waterhouse & Co. The entire process will cost $2.1 billion to buyout at least 90 per cent of the shareholders at the current price.

The promoter group, VRL, currently holds 50.14 per cent stake in Vedanta while, the rest is held by institutional investors and minority shareholders. VRL has made an offer to acquire all the balance shareholding, at least 90 per cent of all the shares, for the voluntary delisting of the company from stock exchanges.

At the time of market closing on Tuesday, the stock of Vedanta Ltd was trading at Rs 89.95, down by 2.70 per cent against its previous close of Rs 92.45. Its 52-week high is Rs 179.95 while, its 52-week low is Rs 60.30 on BSE.