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The Vedanta Limited Delisting Fiasco

The Vedanta Limited Delisting Fiasco
Case Code: FINC176
Case Length: 12 Pages
Period: 2020
Pub Date: 2021
Teaching Note: Available
Price: Rs.250
Organization: Vedanta Limited
Industry: Metals & Mining
Countries: India
Themes: -
The Vedanta Limited Delisting Fiasco
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

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.

Issues

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.

Contents

Keywords

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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