Exclusive: Vedanta delisting likely to happen at higher price, sources say

The delisting price of Vedanta Limited’s stock is likely to be much higher than the offer price of Rs 87.5 per equity share, given earlier by the company, Zee Business Executive Editor Swati Khandelwal revealed to Managing Editor Anil Singhvi in this breaking news. The delisting will now happen at a higher price, Khandelwal said quoting sources.

The delisting price could be as high as Rs 130-Rs 135. The big Foreign Institutional Investors (FIIs) may settle at this price, she further said. The deal will happen above the existing price and the Life Insurance Corporation of India (LIC) - a key stakeholder - will have a significant role in this, she added.

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कंपनी की डीलिस्टिंग ऊंची प्राइस पर होने की संभावना...बड़े FII निवेशक ₹130-135 पर हो सकते हैं सहमत: सूत्र#ZBizExclusive #Vedanta #Delisting @AnilSinghvi_ @SwatiKJain pic.twitter.com/fXC08GdTVA

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Reacting to the development, the Market Guru said that the delisting was not likely to happen at the offer price initially given by the company. No shareholder will part away with the shares at the initial offer price, he said adding that the question now is at what price the delisting will likely happen?

The shares of Vedanta Limited are being held by big investors and the company is part of Nifty 50. The company requires a go ahead from investors to get itself delisted.

The company began the delisting process a while ago, and has received shareholders’ approval.

As for retail investors, it will be a loss no matter what price the shares are bought by the company, Singhvi said. The shares have been bought at prices above Rs 200, Rs 250 by many investors, he added.

The key role will be played by LIC in the delisting process, the Managing Editor said as the state-insurer has a significant stake in the company. It is expected that the LIC will not offer its shares below the book value.

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The book value of the stock is around Rs 145 after accounting the losses in the last quarter. There is a big possibility that the company may have to revise its price at the time of the open offer.