InvestorQ : Should shareholders of Vedanta accept the price of Rs.87.50 offered by the promoters for delisting?
Anu Biswas made post

Should shareholders of Vedanta accept the price of Rs.87.50 offered by the promoters for delisting?

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Neelam Naik answered.
1 year ago
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The past experience has been that shareholders can always get a better price if they wait longer and institutional investors apply more pressure on the company to hike the price. The price was set at Rs.87.50 and there has been a call for a significantly higher price considering that the company is sitting on cash stash of nearly Rs.35,000 crore and the market cap is just Rs.33,000 crore. When a similar delisting exercise was done for Vedanta Resources PLC on the London Stock Exchange, the price was set at 27% premium to the closing price. There is no reason why the Indian shareholders off Vedanta Ltd should settle for such a low price especially when the company is sitting on a cash pile.

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