Vedanta to acquire 4.98% shares through block deal

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After failing to delist the company through reverse book-building offer, Anil Agarwal-owned Vedanta plans to acquire 4.98 per cent shares between ₹150.45 and ₹160 a share through a block deal on Thursday.

JP Morgan India will act as the broker to the promoters’ company Vedanta Holdings Mauritius. The company will acquire 1.8 crore shares.

The offer price is at 6.3 per cent premium over the closing price of ₹150 on Wednesday. The share of the company, which had hit the lower circuit of ₹132.65 on Monday, has gained 8 per cent on Wednesday. As per SEBI norms, promoters are allowed to acquire up to 5 per cent a year through creeping acquisition.

In May, the promoters of Vedanta announced a delisting offer at ₹87.5 a share. Interestingly, LIC, which held 6.37 per cent in Vedanta, submitted all its shares at a price of ₹320, a 267 per cent premium over the floor price of ₹87.25, upsetting Vedanta’s calculations.

The total number of shares validly tendered by the public shareholders in the delisting offer was 125.47 crore, which is less than the minimum number of shares required to be accepted by the acquirers in order for the delisting offer to be successful.

Following this, Vedanta Resources in October failed to garner the required number of shares to delist Vedanta and returned the tendered shares back to investors.

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