Industry

Vedanta plunges almost 21% after delisting ‘fails’

Shares of Vedanta on Monday plummeted close to 21% after the company’s delisting went from almost-a-success to failure, on account of a large quantity of unconfirmed orders.

The stock plunged 20.6% to close at ₹96.95 on the BSE. During the day, it tanked 23% to ₹94.

On the NSE, the shares tumbled 20.7% to ₹96.65.

The company’s market valuation declined ₹9,347.78 crore to ₹36,038.22 crore on the BSE. In volume terms, 85.06 lakh shares were traded on the BSE and over 14.5 crore shares on NSE. In a regulatory filing, Vedanta said its buy-back offer is deemed to have failed as per the terms of the delisting regulations after promoter Vedanta Resources did not receive the required number of shares to delist the firm. A large number of unconfirmed bids and some technical glitches in the tender process are likely to have contributed to the failure.

The BSE, on October 9 evening showed 137.74 crore shares, out of a total 169.73 crore shares held by the public, to have been offered for sale to promoters, larger than the threshold of 134.12 crore. Some bids, however, were pending confirmation from custodians.

Reconciliation of data led to the number of shares offered for sale being trimmed to 125.47 crore. This, Vedanta said, was “less than the minimum number of offshore shares required to be accepted by the acquirers in order for the delisting offer to be successful.”

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Printable version | May 7, 2021 4:27:11 AM | https://www.thehindu.com/business/Industry/vedanta-plunges-almost-21-after-delisting-fails/article32837716.ece

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