Vedanta de-listing failure: Mammoth task could have brought USD 3 billion in FDI

Source :Sify
Author :Finance Desk
Last Updated: Tue, Oct 13th, 2020, 18:10:48hrs

Mumbai: India lost out on a probable $ 3.15 billion in FDI investments from the failure of Vedanta's delisting process.

In a statement on Tuesday, the company expressed gratitude towards the capital market regulator SEBI, BSE, its shareholders, the banks and advisors and exuded confidence that the company would grow as a listed company on the Indian exchanges.

Vedanta called the delisting bid to garner approximately 134 crore shares as a "mammoth" task.

"We saw enthusiastic participation by our shareholders that took us within striking distance of our goal, short by only 7 per cent," it said.

"The bid would have resulted in FDI inflow of over 3.15 billion dollars into the Indian economy and helped boost growth between 0.4 per cent and 0.8 per cent through the multiplier impact of such large infusion of funds," said the statement.

It said that Vedanta looks forward to unparalleled opportunities and growth in India and the company is committed to fulfilling the goal of self-reliance in the natural resources sector.

On Saturday, Anil Agarwal's Vedanta Ltd announced that its delisting offer had failed due to the requisite number of shares not being offered by shareholders.

Vedanta's delisting offer is deemed to have failed in terms of the delisting regulations. It said that 125.47 crore shares were validly tendered by public shareholders. The reverse book building process for public shareholders had concluded on Friday.

For successful delisting of the shares, 134.12 crore shares needed to have been validly tendered for the promoter shareholding to cross the 90 per cent shareholding.