Vedanta seeks extension of buyback after delisting fails1 min read . Updated: 12 Oct 2020, 07:25 AM IST
- Vedanta says its buyback offer is deemed to have failed as per the terms of the delisting regulations after promoter Vedanta Resources did not receive the required number of shares to delist the firm
Vedanta Ltd’s delisting went from almost-a-success to failure on account of a large quantity of unconfirmed orders, forcing the company to look for options to extend the buyback period by a day.
In a filing, Vedanta said its buyback offer is deemed to have failed as per the terms of the delisting regulations after promoter Vedanta Resources did not receive the required number of shares to delist the firm. A large number of unconfirmed bids and some technical glitches in the tender process are likely to have contributed to the failure.
BSE on 9 October showed 137.74 crore shares, out of a total 169.73 crore shares held by the public, to have been offered for sale to promoters, larger than the threshold of 134.12 crore. Some bids, however, were pending confirmation from custodians. Reconciliation of data led to the number of shares offered for sale being trimmed to 125.47 crore.
This, Vedanta said, was “less than the minimum number of offshore shares required to be accepted by the acquirers in order for the delisting offer to be successful". “Accordingly, the acquirers will not acquire any equity shares tendered by the public shareholders in the delisting offer and the equity shares of the company will continue to remain listed on the stock exchanges," it said.
All equity shares tendered in the delisting offer shall be returned, it added. Officials privy to the development said Vedanta is now exploring with regulatory authorities if the reverse book building period could be extended by one day.
For successful delisting of the shares, 134.12 crore shares needed to have been validly tendered for the promoter shareholding to cross the 90% shareholding threshold.
The reverse book building process for shareholders to tender shares, began on 5 October and ended four days later.