The board of directors of Anil Agarwal-led Vedanta Limited on Monday evening approved the delisting plan after reviewing the due diligence report dated May 18, 2020 from SBI Capital Markets Limited.
On May 12, the company received a letter from its promoter firm Vedanta Resources Limited to buy the public shareholding of Vedanta Limited ₹87.25 per share.
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"Approval was granted to the Company to seek shareholders’ approval for aforesaid Delisting Proposal by way of special resolution through postal ballot and e-voting, and in this regard the draft of the postal ballot notice and the explanatory statement thereto were also approved," said the company in a statement.
Vedanta Ltd shares on BSE almost tanked 2% to ₹90.75 in a firm Mumbai market on Tuesday morning.
The Company was authorized to dispatch the said postal ballot notice and the explanatory statement to the shareholders in accordance with applicable laws; and obtain approval of the Stock Exchanges in accordance with the provisions under the Delisting Regulations and/ or any other regulatory/ government authority in India and/ or abroad.
The company has appointed Mr. Upendra C. Shukla, Practicing Company Secretary as the scrutinizer in terms of the Companies Act to conduct the process of the postal ballot un a fair and transparent manner.
According to proxy advisory firm Institutional Investor Advisory Services (IiAS), the delisting floor price at ₹87.25 per share unfair and the shareholders should have ideally got base price of ₹225 per share.
However, the final offer price for the Delisting Proposal will be determined in accordance with the reverse book building mechanism set out in the Delisting Regulations.
