Vedanta jumps by more than 9 per cent on delisting proposal
On Tuesday evening, Chairman of Vedanta Resources Anil Agarwal announced the proposal to delist Vedanta Limited from the bourses with its promoter group Vedanta Resources.
This offer comprises to buyout the 48.94 per cent non-promoter shares at Rs 87.5 per share. This price signifies a premium of ~10 per cent over its closing market price on May 11 which was Rs 79.60.
Vedanta Resources along with the other members of the promoter group presently hold 1,76,43,26,080 equity shares aggregating to 51.06 per cent of the paid-up equity share capital of the company, excluding American depositary shares (ADS) issued by the company.
One of the rational of this proposal is to simplify the corporate structure.
Besides, a meeting of the board of directors of Vedanta Limited is scheduled to be held on May 18, 2020 to consider the proposal for voluntary delisting of the equity shares of the company.
Looking at the price trend of Vedanta Limited, its share price has eroded around ~42 per cent in the last one year.
In today’s trading session, the stock of Vedanta jumped by more than nine per cent and made an intraday high of Rs 98.20 on BSE.