Posted on 18-03-2021 by Admin
Vedanta delisting seems to be clearing the way The company has fixed a price of Rs 235 per share for the open offer. The company informed the exchange late on Tuesday night. Investors will get 46.8% higher than in January. That is, investors have earned 46.8% in just two months.
Open offer was Rs 160 in January
In January, the company set a price of Rs 160 per share in the open offer. On Tuesday, the company s stock closed at Rs 226 on the Bombay Stock Exchange (BSE). In such a situation, it became a profitable deal for the investors. In addition, the promoters have offered to buy 65.10 million shares. Earlier there were plans to buy 37.17 crore shares.
Rs 1.29 interest per share
The company has given a reason behind raising the share prices that it is also adding interest of Rs 1.29 per share to it. Vedanta Resources introduced a new open offer on 8 January through its 3 subsidiaries Twin Star, Vedanta Holding Mauritius and Vedanta Holding Mauritius-2. The company will spend around Rs 15,300 crore on the open offer. Last year, when the company had announced an open offer, the amount would have been Rs 5,948 crore if the open offer had been completed.
Price increase in open offer due to increase in prices of shares
The main reason for increasing the offer price is the increase in the price of shares, which has been trading at around Rs 226 per share since January. On January 29, the price was Rs 161.20. In January, the company set the offer price at Rs 160 per share. When the company set a price of Rs 160 per share in January, it was 12% lower than the market price at the time.
How did the delisting fail last year?
Last year the delisting actually happened because the mutual fund as well as the investors, all have an average price of around Rs 140 per share. Some bought at 140, some bought at 120, some bought at 70 and some bought at 160. Now the average price per share is 140, so no investor can give it for Rs 87.25.
At what price do you get shares for delisting
Shares were received at different prices for delisting. Some offered at 155, some offered at 175, some offered at 320 and some offered at a higher price than that. JP Morgan was elected merchant bankers by the company for delisting. This quote was kept on the advice of merchant bankers.
Delisting means the company is listed on the stock market. Now the company wants it to remain on the list and become private. Therefore, the company wants to withdraw from the stock market. Open offer means that when a company wants to buy a lot of shares in its company, then according to the rules of market regulator SEBI, it has to bring an open offer. That is, he has to buy shares from investors in the open market. It is the will of the investors whether he will sell shares in it or not.