Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vedanta Resources has announced the voluntary delisting of its subsidiary Vedanta Limited from the Indian stock exchanges to simplify its corporate structure and enhance operational and financial flexibility. Vedanta group’s other Indian subsidiary Hindustan Zinc will continue to be listed.


Vedanta Resources has made an indicative offer of Rs87.5 per share to buy out 48.94pc non-promoter shares, which is a 9.9pc premium over the share’s closing market price on May 11, according to a release issued by the company. The company has not yet unveiled any plans of expansion or restructuring through delisting. Vedanta Limited’s board will meet on May 18, to consider and approve the delisting which is subject to regulations set by the Securities and Exchange Board of India.


Vedanta Resources holds 50.14pc stakes in Vedanta Limited and the delisting will help gain operational and financial flexibility to operate competitively in a capital-intensive sector.


In 2018, Vedanta Resources Plc delisted itself from the London stock exchange to be renamed as Vedanta Resources Limited. Earlier in the group acquired iron ore exporter Sesa Goa which was merged with Sterlite in 2012. In 2016, Vedanta Limited acquired oil producer Cairn India.


Moody’s has placed Vedanta Resources under review for downgrade in March. The agency said the company is vulnerable to the glut in the oil market and drip in metal prices due to sluggish demand following the COVID-19 pandemic.

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