Takeover Tycoon Anil Agarwal to delist Vedanta Ltd. from Indian stock exchanges

The sudden delisting of Vedanta from the Indian stock market has been announced by billionaire Anil Agarwal, who has the knack of making sick units profitable in the world's metal-mining industry and is known as a takeover tycoon. Corporate India and investors were surprised when the promoter of Vedanta Resources announced yesterday that it would buy 4.5 per cent of non-promoter's shares in Vedanta at Rs 4.5 per share. Vedanta's delisting offer was made at a premium of 7.5 per cent from the company's share price on May 11, 2020.

Usually companies delist when they are expanding or restructuring and acquired by others or promoters want to increase their holdings.

At present, the promoter group's holding 50.14 percent of the company after this delisting offer opened today Vedanta's share price was at Rs 8930 against Rs .98.20 .90.25 per cent to 1.06 per cent or Rs95.

The proposed delisting offer will provide instant opportunities to Vedanta’s public shareholders and give them an opportunity to get a definite value for their shares in times of increased market turmoil. Earlier in July 2016, Agarwal had planned to delist Vedanta Resources from the London Stock Exchange and said it was no longer necessary to raise London listing capital. Then, on October 1, the company's shares were bought and successfully delisted.

Vedanta Resources was the first Indian company to be listed in London in 2003 with an offer of 64.4 million. It is worth mentioning that companies usually do this when they are expanding or restructuring their delisting or when others through acquisitions or promoters want to buy their holdings. For voluntary delisting the company usually offers the shareholders a premium from the trading at the prevailing price on the exchange.