InvestorQ : Do you think that Vedanta should revise its price for delisting the shares above Rs.87.50 already offered?
Mary Joseph made post

Do you think that Vedanta should revise its price for delisting the shares above Rs.87.50 already offered?

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sara Kunju answered.
11 months ago
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Considering the value that Anil Agarwal will get out of the company, he should ideally pay a premium. Vedanta Resources PLC was delisted from the LSE at a 27% premium to the market price and close to the 52-week high. The 52-week high for Vedanta Ltd is Rs.179 so the delisting price should be closer to that. Vedanta has cash of Rs.35,000 crore, so paying just Rs.33,000 crore is clearly unfair to minority shareholders. The delisting also gives Vedanta access to mountains of cash in Hindustan Zinc. Clearly, it would behove upon Vedanta to pay a control premium for the stock because Rs.87.50 is a song. As per SEBI regulations, if the promoter is able to get more than 90% of the shares, it can force delisting. With promoters holding 51% and with large institutional holdings, that may not be too tough. In the past, Vedanta had been pulled up by the markets for weak corporate governance standards in its UK delisting of Vedanta PLC. Vedanta would do itself a favour by focusing on giving the shareholders a good price. If you look at the LSE standard, then a price of Rs.150-170 should be attractive to sharerholders.

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