Vedanta's share price plunged 23 percent on Monday after the company's regulatory filing informed that the delisting offer has failed. The stock slipped as much as 23 percent to hit lower circuit at Rs 94 per share on the BSE.

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In its filing, it further said, "The total number of Offer Shares validly tendered by the Public Shareholders in the Delisting Offer is 1,25,47,16,610 Offer Shares, which is less than the minimum number of Offer Shares required to be accepted by the Acquirers in order for the Delisting Offer to be successful in terms of Regulation 17(1)(a) of the Delisting Regulations. Thus, the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations."

Meanwhile, for a successful delisting, 134.12 crore shares needed to have been validly tendered for promoter shareholding to cross 90 percent.

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Is it necessary to participate, what happens in case of delisting failure?

For the time being, equity shares of the company and those tendered by the shareholders in the delisting offer will continue to remain listed on the exchanges for now.

Brokerages CLSA and Citi Research in their respective reports have maintained their ratings but reduced their price targets to Rs 118 and Rs 130 respectively, citing leverage on the promoter entity and awaiting further clarity on the side of the promoters.

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First Published:Oct 12, 2020 11:32 AM IST