Anil Agarwal-promoted Vedanta Limited informed the stock exchanges that the promoter group has offered to buy out all the public shareholders in the company at indicative price Rs 87.50 a share, and delist the company from the BSE and NSE. The offer price is roughly 10 percent higher than the stock's closing price of Rs 79.60 on Tuesday.

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At present, promoters hold 51.06 percent in the company and the remaining 48.94 percent is held by public shareholders.

Assuming all shares are accepted at the indicative offer price, the promoters will have to pay Rs 16,200 crore.

"The Company has received a letter dated May 12, 2020 from one of the members of the promoter and promoter group of the company, Vedanta Resources Ltd. In the letter, VRL has expressed its intention to, either individually or along with one or more subsidiaries, acquire all fully paid-up equity shares of the company held by the public shareholders

and consequently voluntarily delist the equity shares from the BSE and NSE," the company said in its filing to the stock exchanges.

The company's board will be meeting on May 18 to consider the delisting proposal.

"We are further informed that the indicative offer price should in no way be construed either as an obligation/ restriction on VRL and/ or its subsidiaries to accept the equity shares tendered in the delisting offer at a price lower than, equal to or higher than the indicative offer price or as a restriction on the public shareholders to tender the equity shares at price higher than the indicative offer price," the company said in its filing.

Among major institutional investors in Vedanta, LIC holds 6.37 percent, ICICI Prudential Equity Arbitrage Fund holds 5.03 percent, and Citibank New York, NYADR Department holds 4.37 percent.

In addition to the shares listed on BSE and NSE, Vedanta has issued roughly 65 million American Depository Shares, of which close to 25 million are held by the promoters. If the company is successful is delisting from the BSE and NSE, it will also delist its ADS from the New York Stock Exchange.

First Published:May 12, 2020 10:25 PM IST