Mumbai: Anil Agarwal led-Vedanta Ltd will delist its American Depository Shares from the New York Stock Exchange to terminate its ADS program, which represents 4 per cent of the Company’s equity.
Upon delisting, the company “will concentrate” all trading of its equity shares on the BSE Limited (BSE) and the National Stock Exchange of India Limited in India (NSE),”
said in an exchange filing on Thursday.
The Company’s Board of Directors has considered the recent low trading volume of its ADSs on the NYSE and the associated costs of maintaining the listing and related obligations.
The Company intends to file a Form 25 with the Securities Exchange Commission (SEC) on or about October 29, 2021, to delist its ADSs from the NYSE, the Company’s statement said.
The delisting is likely to become effective ten days after that, at which time the ADSs of the Company will no longer be listed for trading on the NYSE.
The Company also announced that it intends to terminate its ADS program and the corresponding deposit agreement under which it is maintained.
By the depository agreement, Citibank, N.A. will provide notice of termination to all ADS holders containing the relevant information for ADS holders to take various suggested actions. The ADS program will terminate 31 days after Citibank, N.A. delivers formal notice of the termination of the deposit agreement to ADS holders.
The Company had attempted to delist shares from Indian bourses but received a lukewarm response from minority investors. In May 2020, the promoters of Vedanta announced a delisting offer at Rs 87.5 per share.
The total number of shares validly tendered by the public shareholders in the delisting offer is 125.47 crore, which is less than the minimum number of shares required to be accepted by the acquirers for the delisting offer to be successful.
While the delisting offer failed to enthuse minority shareholders to surrender their shares, Vedanta’s promoters still managed to creep up its shareholding from 55.1 per cent to 65.18 per cent.
Last week, the board of directors of Agarwal-led Vedanta Ltd approved an interim dividend of Rs 18.50 per equity share. The total payout was about Rs 6,877 crore. It is estimated that the dividend receipt in the hands of the holding company, Vedanta Resources, would help in a debt reduction of about Rs 4,482 crore.
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