Vedanta shares slump 23% as delisting offer fails
In May, Vedanta Resources Ltd had expressed its intention to delist the shares of Vedanta from the BSE and NSE. It believed that a delisting will provide the group with enhanced operational and financial flexibility
MUMBAI: Shares of Vedanta Ltd fell nearly 23% on Monday following its failed attempt delisting the stock from the exchanges.
At 0220 pm, Vedanta shares traded at ₹97.35 apiece, down 20.3% from its previous close, while the benchmark Sensex was up a tad at 40526.65.
Promoter Vedanta Resources deemed the delisting offer to have failed after lower than required shares were offered. A total of 125.47 crore shares were tendered by shareholders against the 169.73 crore shares sought by promoters.
All equity shares tendered in the delisting offer shall be returned to the respective public shareholders, the company said.
In May, Vedanta Resources Ltd had expressed its intention to delist the shares of Vedanta from the BSE and National Stock Exchange. It believed that a delisting will provide the group with enhanced operational and financial flexibility in a capital intensive business. In June, Vedanta had received shareholders' approval for the delisting.
The company's consolidated net profit declined 23.5% year-on-year to ₹1,033 crore in the quarter ended June while revenue from operations fell 25.9% to ₹15,687 crore.
Vedanta, a subsidiary of Vedanta Resources, is among the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia, and Australia.
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