Vedanta shares pared gains after surging 10 percent in early trade on Wednesday after the company said that its promoter group is looking to delist the company from the BSE and the NSE.

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It informed the stock exchanges that the promoter group has offered to buy out all the public shareholders in the company at an indicative price Rs 87.50 per share, which is roughly 10 percent higher than the stock's closing price of Rs 79.60 on Tuesday.

The stock rose 10 percent to Rs 98.20 apiece on the BSE. At 9:43 am, the stock pared gains and was trading 2.7 percent higher at Rs 91.70.

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.

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.

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First Published:May 13, 2020 10:01 AM IST