Vedanta Limited initiated its delisting with its ‘Offer to Buy’ process on Monday. The offer closes on Oct 9. The reverse book building process will determine the delisting price for the stock. The company will acquire 169.74 crore equity shares for delisting. The floor price is set at Rs87.25 ($1.18) per share.
The offer excludes 3.91 crore (39mn) American Depository Share (ADS) representing about 15.65 crore (156.5mn) shares as on Sep 25, 2020. ADS holders can participate in the bid if they are ready to covert their ADS into equity shares.
Vedanta’s promoter group hold 52.33pc stake in the company through the total issued and paid-up equity share capital of the company, excluding the ADS issued by the Company. According to the offer letter 50pc shares are held by the public; 467 foreign portfolio investors holding 15pc of the shares and LIC through LIC of India Health Protection Plus Non-Unit Fund holds 6.37pc stake in Vedanta. Small retail investors hold 6.95pc stakes in Vedanta with 6.8 lakh (0.68mn) shares.
Vedanta Resources obtained $3.15bn in debt funding for delisting. This comprises $1.75bn in a three-month term loan and $1.4bn of three-year amortizing bonds having 13pc yield.