The Vedanta Limited Delisting Fiasco
| Case Code: FINC176
Case Length: 12 Pages
Pub Date: 2021
Teaching Note: Available
| Price: Rs.250
Organization: Vedanta Limited
Industry: Metals & Mining
Abstract Case Intro 1 Case Intro 2 Excerpts
The case study discusses the delisting attempt of Vedanta Limited (VL) by Vedanta Resources Limited (VRL), the majority shareholder and parent company of VL, the Indian subsidiary. The whole delisting process went through smoothly but due to issues like offer price and unconfirmed bids, VL’s delisting failed. The case discusses these issues as well as other issues such as unpaid dividends to VL shareholders and the sudden asset write-offs by the management of VL.
The case follows the delisting process from the initial proposal to the final fiasco. It helps students not only to understand the nitty-gritty of share delisting regulations but also to realize how companies respond when they trade below their intrinsic value in turbulent times.
The case is structured to achieve the following teaching objectives:
- To understand why companies go in for delisting.
- To understand the process of delisting.
- To understand the Reverse Book Building process and how the final delisting price is estimated with the help of this process.
About Vedanta Resources Limited
About Vedanta Limited
Financial Position of Vl
Vl’s Issued And Paid-Up Capital Structure
Delisting: A Failed Attempt
Issues Relating to Delisting Offer
Reverse Book Building; Delisting; Offer Price, Asset Write Offs; Dividend; Unconfirmed Bids; Book Value; Beneficiaries of delisting; Delisting regulation; SEBI; Vedanta Limited; Vedanta Resources Limited; Failed delisting attempt
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