Vedanta Limited - Voluntary Delisting Proposal - Angel Broking

Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd on Vedanta Ltd.

"Vedanta Ltd is likely to be taken private by Anil Agarwal, who is offering minority shareholders, Rs.87.5 for a share. Currently, Vedanta Resources along with group companies hold 50.14%stake and balance 49.86% is held by public shareholders. It would be a significant erosion of wealth for the existing shareholders as the stock has corrected by almost 50% since the start of the year, reducing the market capitalization of the company to around Rs.30,000 crores. COVID-19 has had a serious impact on the metals industry, and Anil Agarwal is taking this opportunity to take the company private, that will provide his company, more operational and financial flexibility in a capital-intensive business. And as per India's delisting rules, if the promoter's holding exceeds 75% in the company, then the stock can be taken off from trading on the exchanges. In a nutshell, all the investors of the company, who have held shares of the company with high hopes, will have to be satisfied with what's being offered as it does not leave much of an option for them."

Shares of Vedanta Limited was last trading in BSE at Rs.89.3 as compared to the previous close of Rs. 79.6. The total number of shares traded during the day was 3823248 in over 16978 trades.

The stock hit an intraday high of Rs. 90.45 and intraday low of 79.1. The net turnover during the day was Rs. 324701946.

Source : Equity Bulls

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