Exchange Press release yesterday , I wonder what it means for the De-listing , any learned friends can throw some light ?
VEDL --Disclosure to Exchange on Pledging of shares.pdf (1.6 MB)
Funds are being raised by the parent Vedanta Resouces by pledging of shares in downstream entities like Vedanta for the purpose of delisting of Vedanta Limited the formal process of which which is expected to commence soon.
I tried to reconstruct Vedanta portfolio using it’s nearest peers. The cost of replicating one stock of Vedanta comes to Rs146. Let’s see where the delisting happens
Source: Opportunity or Opportunistic...
DELISTING SCHEDULE OF ACTIVITIES:
Disclosure: Bought recently. Do not recommend buy or sell. Not an investment advisor and Investors are advised to do their own due diligence.
HZ in this picture is Hindustan Zinc I suppose. Peer EV column says 57,883 Cr. How did you arrive at that? In fact, other than NMDC, I find all other EVs very different from what you see on screener website. I mean for NTPC, HZ and ONGC.
None of your EV numbers matches with what’s given on Screener.in except for NMDC. If you take the numbers from screener then, using your formula, EV comes to 1244587.4 and again using your formula, the target market cap comes to 1032587.4 and share price comes to 278.
Hi, HZ is indeed Hindustan Zinc. Not sure about Screener’s data hope they are capturing the cash on books in form of current investments. I take data from www.goindiastocks.com. Also there could be minor difference as these calculations were done some time ago and stock prices would have changed. But no way the difference is what you point out. Please check numbers on cash levels for companies again. thanks
Here’s what you don’t know about Vedanta Limited delisting and the possible Final Price of ₹350/share
Interesting article. Please make sure to spread the word.
Need to quote bids at fair price
ET suggests otherwise
The article mentions that
Hindustan Zinc shares have been pledged to provide owners cushion for delisting process.
I quote from the article
AUG 29 UPDATE. Just reported, Vedanta Limited pledged ALL its Hindustan Zinc shareholding, valued at $8.50 billion as on Friday closing. Lenders could extend a loan of maybe up to 75% or $6.30 billion. Besides, Vedanta Limited has about $6.80 billion in cash on hand, and then there is cash from $1.40 billion in bonds. That’s a total of $14.50 billion. Hence, Mr Agarwal can potentially enhance the existing short-term loan to $14.50 billion. It’s probably not realistic to think he would use all that for the delisting, but it does provide us with a ceiling. This $14.50 billion translates to ₹590/share (a conservative number, assuming promoters buy out ALL minority shareholding, not the minimum needed for 90%). ₹590/share is the high price on a range he could be willing to pay. There is a high likelihood that the delisting will be successful with a final price of over ₹350/share.
Can this be corroborated? Are these shares pledged to provide additional resources for delisting or for any other purpose?
No one is looking at Rs. 350/share delisting, market prices are not reflecting the same.
Whether retail investor should move out from market by selling the stock on BSE at CMPof Rs. 137 as delisting price is half ? or Should hold it and sell it in the grey market after delisting after few years seeing current market situation ?
Delisted price is the discovered price accepted by the promoter. It is decided by a process called Reverse Book Building. The said process starts on Monday for Vedanta Ltd and ends on 9th.
You can continue to hold your shares.
I am facing a problem and perhaps someone can help/ guide. Am using Kotak securities account. The Offer to Buy Page is enclosed. I am unable to amend the price from 87.25. Kotak customer service says it cannot be amended as that is the offer price of the company. Has anyone else faced similar issue?
I have deleted the qty and my details from the screenshot. Thanks
Can you share link to Vedanta BSE delisting bids page?
Very well complied article by moneylife on Vedanta’s delisting attempt
Must read by all shareholders of vedanta as this article clearly explains strategy of Anil Aggwarwal
Vednata Delisting Live BSE https://www.bseindia.com/markets/publicIssues/BSEBidDetails_ACQ.aspx?flag=ec&Scripcode=5255
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