Failure of Vedanta Limited`s Delisting
Code : INB0018 |
Region : Asia |
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Introduction:Vedanta Limited (VL), a subsidiary of London based Vedanta Resources Limited (VRL) and a leading and diversified natural resources company, had operations in different parts of the world. It was a leading producer of oil & gas, zinc, lead, silver, copper, iron ore, steel, aluminum, and power. On May 11, 2020, the Chairman of VRL announced the delisting of its Indian subsidiary, VL, from the Indian stock exchanges. As a part of the delisting process, the management aimed to bring back 48.94% of shares held by public share holders, trading on the Indian stock exchanges with a market capitalization of Rs. 331,940 million as on the date of announcement of the delisting process. Around 1697 million shares were outstanding and were trading on the Indian stock exchanges. The promoters had a share of 50.14% in the total composition of equity share capital of the company. The company needed to secure 1341 million shares to complete the delisting process.. There were many web companies globally that were racing to list on American exchanges. Soon after LinkedIn’s listing on the NYSE, Yandex floated its shares on the NYSE. Its price increased by more than 50% on the very first day of trading . These first-day "pops", as bankers call them, raised fears that a new internet bubble was being formed and sparked an unending debate on how best to value IT start-ups |
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