Vedanta shareholders to vote on delisting proposal by 24 June
Shareholders will just vote on the proposal to delist, not the indicative delisting price offered by the promoter
MUMBAI : Anil Agarwal-controlled Vedanta Ltd on Monday said it has kickstarted the process to seek shareholder nod for delisting the company.
It has issued a notice seeking shareholder approval for delisting through a postal ballot, it said in a filing with the stock exchanges. Shareholders will get to cast their votes between 26 May and 24 June.
The delisting process requires a majority of its public shareholders to vote in favour of the special resolution, or at least twice the number of votes cast against it. Public shareholding in Vedanta Ltd is at 49.48%, while the rest is held by Agarwal and his family.
On 12 May, Vedanta said its promoters planned to take it private and put an indicative offer price of ₹87.5 per share to buy shares of Vedanta Ltd held by public shareholders.
“Shareholders have to vote only on the proposal to allow the delisting and this is not a vote on the price that has been offered, which is just an indicative price. The delisting price will be determined through a reverse book building process, which could emerge to be slightly or significantly higher than the indicative offer price announced by the promoter," said a person, requesting anonymity. If the delisting is approved by the shareholders, the process could start by mid-July, he added.
“The eventual pricing will depend on how the commodity cycle pans out over the next month and half. The delisting offer could prove to be a good exit opportunity for investors if they don’t see the commodity cycle improving anytime soon," he said.
On 21 May, Mint reported that several institutional shareholders of the company were not enthusiastic about the indicative offer price of ₹87.5 per share.
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