×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Vedanta's sweetened open offer gets 57.5% bids

Going by the shares tendered, the open offer will cost Vedanta Resources Rs 8,794.37 crore
Last Updated 07 April 2021, 15:29 IST

Anil Agarwal-led Vedanta Resources Ltd's sweetened offer to buy back 17.5 per cent share in its Indian flagship firm was subscribed 57.5 per cent, helping it raise its stake to about 65 per cent.

The voluntary open offer to buy 65.1 crore shares in Vedanta Ltd at Rs 235 apiece received offers for 37.42 crore shares or 57.49 per cent of the offer size, according to stock exchange data.

The subscription was till 15.30 hrs on Wednesday -- the last date of the open offer.

Vedanta Resources had raised the open offer price last month after its bid in January to buy up to 10 per cent in Vedanta Ltd at Rs 160 apiece was not received enthusiastically.

Of the bids received, foreign institutional investors (FIIs) offered 20.83 crore shares while mutual funds offered 6.38 crore shares. Corporates offered 7.04 crore shares and individual investors tendered 1.6 crore shares, according to information on available on BSE.

Going by the shares tendered, the open offer will cost Vedanta Resources Rs 8,794.37 crore.

If full 17.5 per cent shares were subscribed, it would have cost the company Rs 15,298.5 crore.

While the offer price of Rs 235 per share was at around 60 per cent, 45 per cent and 30 per cent premium over the 6 months, 90 day and 60 day volume-weighted average price (VWAP), respectively, the previous offer price of Rs 160 apiece for 37.17 crore shares was less than Vedanta's trading price.

Vedanta Resources' shareholding in Vedanta Ltd would have increased from the current 55.1 per cent to 72.6 per cent if the entire offer was subscribed. But for now, it will have to settle at 65.1 per cent.

The open offer started on March 23 and closed April 7.

In October last year, Vedanta Resources had failed to garner the required number of shares to delist its Indian arm at the offer price of Rs 87.5 apiece.

In December, the promoters increased their stake from 50.14 per cent to 55.11 per cent through block deals totalling Rs 2,959 crore.

At the time of raising its stake in December 2020, Vedanta Resources had said the move was aimed at simplifying the group structure.

"This is in line with our stated strategic priority for simplifying the group structure to align the group's capital and operational structures, streamline the process of servicing the Group's financing obligations and improve a range of important credit metrics," it had said.

The simplification process -- which has been underway for several years -- has involved mergers of group companies and may involve other share acquisitions in accordance with applicable law, the company had said.

During the delisting offer in October, promoters were able to get only 125.47 crore confirmed bids against the required 134.12 crore shares.

Vedanta had tied up USD 3.15 billion in loans to finance the buying of shares but returned the money to lenders no sooner had the delisting bid failed.

As of December 31, LIC held 5.58 per cent of Vedanta Ltd while ICICI Prudential Mutual Fund and HDFC Mutual Fund owned 3.14 per cent and 1.28 per cent stake, respectively.

ADVERTISEMENT
(Published 07 April 2021, 15:29 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT