Public shareholders of Anil Agarwal-controlled Vedanta Ltd have approved a special resolution that paves the way for delisting the company’s shares from Indian stock exchanges, the company said in a stock exchange filing.
Vedanta had sought shareholder approval on the delisting proposal through a postal ballot, voting for which ended on 24 June.
The postal ballot results showed that 84.2% of the public shareholders who cast their votes were in favour of the delisting.
The delisting process required a majority of the public shareholders to vote in favour of the special resolution, or at least twice the number of votes cast against it.
Public shareholding in Vedanta Ltd stands at 49.48%, while the rest is held by Agarwal and his family.
On 12 May, the company had announced that its promoter had planned to take the company private and had put an indicative offer price of ₹87.5 per share to buy stocks of Vedanta Ltd held by public shareholders.
The proposal had initially faced criticism from minority shareholders on the price being offered. Mint reported on 21 May that most institutional shareholders of the company were unhappy with the price of ₹87.5 that the promoters were offering.
The price offered by the promoters is indicative and the final price for the delisting will be determined through a reverse book-building process, which could turn out to be higher than the one offered by the promoter.
Vedanta Ltd was the first major listed company to announce its plans to delist from the stock exchanges amid the covid-19 pandemic. Since then more companies have announced such plans.
Earlier this week, Adani Power Ltd said it will offer shareholders at least ₹33.82 per share to delist the company.
On 5 June, IT services firm Hexaware Technologies announced plans to delist, offering to buy shares from its shareholders at ₹285 per share.