ABSTRACT:
Unlike the concept of IPO, contra IPO or going private by delisting process is not so familiar among many. By buying back the publicly traded shares and acquiring majority of stake, the promoters of a company try to delist themselves from the stock markets. In March 2020, the UK based mining giant Vedanta Resources Plc. has come up with the delisting proposal of its Indian subsidiary Vedanta limited. However, the delisting was not successful. Analysts have identified that low offer price and unconfirmed bids were the primary reasons for the failure of Vedanta Limited’s delisting. The objective of the current case study is to throw light on the delisting and reverse book building process through the case of Vedanta’s delisting failure. It narrates the entire saga of Vedanta Limited’s delisting right from the announcement to the reverse book building process. The case also helps in understanding the reasons behind such delisting failures.
Cite this article:
P. Kalyani, T. Suchitra Rani. The Delisting of Vedanta – What Went Wrong?. Asian Journal of Management. 2022;13(1):101-4. doi: 10.52711/2321-5763.2022.00018
Cite(Electronic):
P. Kalyani, T. Suchitra Rani. The Delisting of Vedanta – What Went Wrong?. Asian Journal of Management. 2022;13(1):101-4. doi: 10.52711/2321-5763.2022.00018 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2022-13-1-18
REFERENCES:
1.
Gupta A. Regulatory
Framework of Initial Public Offer in India. Research Journal of Humanities and
Social Sciences. 2019; 10(4). doi.org/10.5958/2321-5828.2019.00188.8
2.
Sahoo B P. Kaur K. The
Movement of IPOS in Indian Stock Market and IPO Grading. Asian Journal of
Management; 2017; 8(4):1057-1063. doi.org/10.5959/2321-5763.2017.00162.7
3.
Patel A. Suresha B. Impact
of Corporate Governance on IPO Underpricing - An Evidence from Indian Stock
Market. Asian Journal of Management. 2019; 10(2):95-99.
doi.org/10.5958/2321-5763.2019.00016.7
4.
Khurana R. Warne D P. Stock
Price Adjustments to Selected Corporate Announcements: A Study of Dividend
Announcements. Asian Journal of Management. 2018; 9(1):649-659.
doi.org/10.5958/2321-5763.2018.00102.6
5.
Rashmi R. Suresh N. Sheetal
R. Lokande. Impact of Mergers and Acquisitions on the stock price behavior of
Merger and Acquirer Companies in Oil and Gas Industry. Asian Journal of
Management. 2021; 12(1):15-22. doi.org/10.5958/2321-5763.2021.00003.2
6.
Mangala D. Verma A.
Financial Risk Tolerance of Individual Equity Investors in Indian Stock Market.
Asian Journal of Management. 2018; 9(2):990-998. doi.org/10.5958/2321-5763.2018.00156.7
7.
Tanty G. Assessing the
Bombay Stock Exchange Index Volatility through Garch Model. Asian Journal of
Management. 2019; 10(3): 236-240. doi.org/10.5958/2321-5763.2019.00037.4
8.
Ramya K. Bhuvaneshwari D.
Understanding the Risk Tolerance Level and Trading Behaviour of Individual
Investors with Special Reference to Demographic Profile of Investors. Asian
Journal of Management; 2017; 8(3):901-911.
doi.org/10.5958/2321-5763.2017.00139.1
9.
Bairagi P. Chakraborty A.
Influence of Risk -Perception on Retail Investors’ Decision Making. Asian
Journal of Management. 2018; 9(2):999-1004.
doi.org/10.5958/2321-5763.2018.00157.9
10. Sashikala V. Chitramani P. The Impact of Behavioural Factors on
Investment Intention of Equity Investors. Asian Journal of Management. 2018;
9(1):183-188. 10.5958/2321-5763.2018.00028.8
11. Vedanta Annual report. Retrieved from
https://iar.vedantalimited.com/InteractiveAnnualReport_FY20/static/Integrated-Annual-Report2019-20-d8d8512ff591a8c893c84c2b6581247d.pdf
12. Bhutoria, P From Public to
private – Delisting 101. Retrieved from https://blog.smallcase.com/public-to-private-delisting-101/
July 23rd, 2020.
13. Agarwal R. “Vedanta Limited Delisting Failure”. Retrieved from
http://www.businessworld.in/article/Vedanta-Limited-Delisting-Failure/26-10-2020-335603/
, October 26th 2020.
14. SES. Vedanta Delisting offer – A litmus test for board of Vedanta
Limited. Retrieved from https://www.sesgovernance.com/pdf/home-reports/1589428758_Vedanta-Delisting_Litmus-Test-for-the-Board-(1).pdf
15. Fatakia H. Vedanta delisting offers fails. Retrieved from
https://www.bloombergquint.com/markets/vedanta-delisting-offer-fails, October
11th 2020.