What happens to retail investors when a stock is delisted?

In case of voluntary delisting The shareholders receive an offer from the acquirer and they can decide to exit by accepting the offer. The shareholder can also deny the offer and continue to hold the shares. When the required number shares are bought back by the acquirer delisting is considered as successful.

Is Vedanta delisting?

Mumbai: Anil Agarwal led-Vedanta Ltd will delist its American Depository Shares from the New York Stock Exchange to terminate its ADS program, which represents 4 per cent of the Company’s equity. NSE -3.22 \% said in an exchange filing on Thursday.

Can I sell delisted shares?

If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.

What happened to Vedanta delisting?

After a failed delisting bid, promoter Vedanta Resources offered to buy up to 651 million shares (17.5 per cent equity) at Rs 235 apiece from the public shareholders of the company. Some of whom have said to tendered their shares. Shares of Vedanta closed at Rs 236.9 in the secondary market.

Why did Vedanta delisting failed?

Delisting of Vedanta, on the other hand, failed because promoter wanted to take the company private on the cheap. They were trying to take advantage of dislocation in the stock price, caused by Covid 19. LIC chairman mentioned that their fair value estimate is 320/share and is the price they will accept for delisting.

What is the market cap of Vedanta after delisting?

The irony is that Vedanta currently sits on a cash balance of Rs35,000cr but has a market cap of just Rs33,000cr. How exactly is the delisting being restructured? There are 5 things that shareholders of Vedanta need to know about the delisting offer.

What does the delisting of Hindustan Zinc mean for Vedanta?

Now Vedanta does not have to share the dividends from Hindustan Zinc with minority shareholders. The delisting will entail an outflow Rs16,218cr but will give full access to the cash flows of the group. It could be the perfect situation when the commodity cycle turns positive.

Is Vedanta’s stock price worth the volatility?

From late 2017 when the Sino-US trade war commenced and Chinese economy began to slow down, the stock price of Vedanta has corrected over 80\%. That is the kind of volatility that does not add much value to Vedanta. The irony is that Vedanta currently sits on a cash balance of Rs35,000cr but has a market cap of just Rs33,000cr.

What are the mergers and acquisitions of Vedanta Resources Ltd?

The merger of Sterlite with Sesa Goa to form Sesa-Sterlite (subsequently renamed Vedanta Limited) in 2012, the merger of Cairn India with Vedanta Limited in 2016, and the delisting of Vedanta Resources Pie (subsequently renamed Vedanta Resources Ltd) in 2018 were the earlier ones.