Vedanta delisting is opportunistic: report

The decision of Vedanta’s promoters to take the firm private by buying out shareholders at ₹87.50 a share is “opportunistic and the price does not reflect the fundamental value of the equity,” Institutional Investor Advisory Services said on Friday. The promoters will have to offer a significantly higher exit price if the bid is to succeed, it added. Last week, billionaire Anil Agarwal-run Vedanta Resources, the London-based holding company, said it will buy back Vedanta shareholders at ₹87.50 a share and take the company private. The offer price was at 9% premium over the previous day’s closing price, but since then, the stock has rallied and closed at ₹92.90 on the BSE on Friday. “The free float market capitalisation of Vedanta is about $2.2 billion and we expect the parent to shell out significantly more, if the de-listing is to go through,” the shareholders’ advisory wrote in a note. Attributing the move to go private to promoters’ debt repayment pressures, the advisory said, “Vedanta delisting at a floor price of ₹87.50 is opportunistic. “The stock is currently trading close to its 52-week low, which is a steep discount to its historic five-year average as a natural fallout of the current economic environment and the COVID-19 crisis.” “The current market price does not reflect the fundamental value of the equity,” the advisory said.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access
Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations
A select list of articles that match your interests and tastes.

Faster pages
Move smoothly between articles as our pages load instantly.

A one-stop-shop for seeing the latest updates, and managing your preferences.

We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

Recent Articles

Coronavirus Live Updates: Latest News and Analysis

At the least 97,000 youngsters within the U.S. examined optimistic for the coronavirus within the final two weeks of July. At the least 97,000...

PM Modi inaugurates first ever optical fibre cable project for Andaman and Nicobar Islands

It would present excessive velocity broadband connections within the union territory at par with providers within the mainland. Prime Minister Narendra Modi on Monday...

Business News | Stock and Share Market News

By Market Capitalisation. Internet Gross sales. Internet Revenue. Whole Belongings. Excise. Different Earnings. Uncooked Supplies. Energy & Gas. Worker Price. PBDIT. Curiosity. Tax. EPS. Investments. Sundry Debtors. Money/Financial institution. Stock. Debt. Contingent Liabilities. Display Crit Abrasives Aerospace & Defence Agriculture Air Conditioners Airways Aluminium & Aluminium Merchandise Amusement Parks/Recreation/Membership Aquaculture Auto Ancillaries Auto Ancillaries...

Chat Group Becomes Target of Moscow’s Wrath as Security Crackdown Widens

MOSCOW — When a bunch of younger Russians arrange a chat group on social media practically three years in the past, they known...

Salmonella Cases Linked to Onions Increase to Nearly 900

He advisable to not devour the onions, even when they've been cooked, as a result of cross contamination with utensils could have occurred. “It’s...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox