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: - |
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
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Introduction
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
What next?
Exhibits
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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