Vedanta shares were down 9.99 per cent at Rs 109.90 on the BSE, while benchmark Sensex was up 324.14 per cent at 40,879 points.
The total number of shares validly tendered by the public shareholders in the delisting offer was 125.47 crore, less than the minimum number of shares required to be accepted by the acquirers in order for the delisting offer to be successful. Vedanta needed 134 crore shares tendered by public shareholders for delisting to go through.
“In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources Limited and its indirect subsidiaries namely, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, (collectively to be referred as ‘Acquirers’) that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations,” Vedanta said in an exchange filing on Saturday.
The reverse book building process for public shareholders to tender their shares was open between October 5 -9, and the floor price for share tendering was set at Rs 87.25.
As per regulations, for successful delisting of shares, promoter shareholding must cross the 90 percent shareholding threshold.
The 12 crore unconfirmed bids have stumped have stumped market analysts and the quantity was significant enough to create a distorted market for bids and had a material impact on the stock price movement
The Securities and Exchange Board of India (Sebi) is likely to ask BSE to verify the source of these unconfirmed bids and whether the bids were genuine or if there was a foul play as alleged by some shareholders.