In an unprecedented move, the chairman of Vedanta Resources, Anil Agarwal has decided to delist Vedanta Ltd from Indian stock exchanges in order to simplify the firm’s corporate structure amid the COVID-19 outbreak.
Vedanta Resources has made an offer of Rs 87.5 for a share. In other words, the company would’ve to pay Rs 16,200 crore to public shareholders.
“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.
According to the billionaire Anil Agarwal-led company, this step will enhance operational and financial flexibility in a capital-intensive business, besides supporting an accelerated debt reduction program in the medium term.
Vedanta is reportedly working with JPMorgan Chase & Co on the plans.
As on date, public shareholders hold approximately 48.94% of the company’s equity share capital (paid-up).
On Wednesday, the shares of Vedanta Ltd surged 10% after the company decided to hold its board meet on 18 May to consider the move.