Vedanta open offer: Should you tender your shares or not? Anil Singhvi gives clear verdict on this
Vedanta open offer started today (March 23) and many shareholders of this company are in a fix about whether they should participate in this exercise or not.
Vedanta open offer started today (March 23) and many shareholders of this company are in a fix about whether they should participate in this exercise or not. Zee Business Managing Editor Anil Singhvi, however, has a clear answer for you. He said one should forget about this Vedanta open offer and not tender shares at the price offered by the company.
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Talking about Vedanta open offer, the Market Guru Said, " Those who have delivery of Vedanta share should not even touch it. One should not tender their shares at Rs 235 at all. They should forget that this open offer is for them. The promoters were ready to take shares even at Rs 87 and Rs 150 earlier too and now they have offered Rs 235. Last time at Rs 160, they were taking 10 per cent and now they have increased it to 17.5 percent at Rs 235. Investors should clearly steer off this open offer, especially when even LIC has quoted this price at Rs 320. So, there is no point in tendering shares at current offered rate. "
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Zee Business Managing Editor said when there is good commodity cycle of 7 to 8 years in metal stocks so, why should there be a rush to tender this quality stock. "Even borrowing-related concerns are also not there. A lot has changed in the last one year and as in investor you should not even think of this open offer," he concluded.
Vedanta Resources, the promoter group company, has offered to buy back 17 per cent of the floating shares at Rs 235 per share, which is 47 per cent higher than the Rs 160 offered in January. The offer opened today and will close on April 7. The company will spend Rs 15,300 crore if the offer is fully subscribed.
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