New Delhi: Vedanta Resources Ltd said on Saturday that it has failed to garner the required number of shares for delisting its Indian subsidiary Vedanta. "In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources Limited and its indirect subsidiaries namely, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, (collectively to be referred as "Acquirers") that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations," Vedanta Limited informed the stock exchanges in a regulatory filing.
The total number of shares validly tendered by the public shareholders in the delisting offer is 125.47 crore, which is less than the minimum number of shares required to be accepted by the acquirers in order for the delisting offer to be successful, Vedanta said in the filing.
Accordingly, the promoters will not acquire any shares tendered by the public shareholders in the delisting offer and all the shares tendered will be returned to the respective public shareholders, it added.
The promoters of Vedanta announced a delisting offer earlier in May at Rs 87.5 per share. Subsequently in a special resolution by postal ballot, 93.3 percent of all shareholders and 84.3 percent of public shareholders approved to delist the shares of Vedanta in June. The LIC bid price is now the discovered price for the reverse book building process. Many other investors too bid at Rs 320 but a lot of bids were also submitted at Rs 150-160 per share.
Vedanta is the third company in the last two years to have made an unsuccessful delisting offer after INEOS Styrolution and Linde India.
According to the rulebook, companies wanting to delist in India are required to offer to buy shares from public shareholders at a 'discovered' price through a reverse book building process. It mandates 90 percent acceptance from all shareholders.
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