Vedanta delisting fails, to return tendered shares

Mining conglomerate Vedanta Resources Ltd on Saturday failed to acquire the required number of shares to delist its Indian subsidiary Vedanta from the Indian stock exchange and would return the shares tendered.

The mining giant was able to tender 125.47 crore shares from public shareholders, which was less than the minimum required by acquirers for the delisting deal to go through. In exchange filings, the company said it would return the shares tendered to the public shareholders

Vedanta announced a delisting offer in May in which it said it would acquire shares at floor price of Rs 87.25 apiece. The delisting effort was approved by 93.3% of shareholders and 84.3% of public shareholders.

Among several public shareholders, LIC held 6.37% in Vedanta and submitted all its shares for Rs 320 apiece, which is a 267% premium over the base price. The Economic Times reports that other investors too bid at Rs 320 a share but many were submitted at Rs 150-160 per share.

Delisting is a situation where a publicly listed company is taken off a stock exchange. Voluntary delisting often happens when a company chooses to expand or restructure its business after an acquisition or when promoters of the company want to up their stake in a company.