Vedanta Delisting Failure
Vedanta Delisting Failure Friends, many people tried to close their shop due to Corona epidemic, Some non-banking corporations closed their businesses due to lack of liquidity, In the same pay share market, some companies used strange strategies and sometimes panic, Occasionally hitting the foursome, created a lot of trouble for the investors. Common public like you, who are most concerned about making sure of their investments, This is why it has become very challenging for us to save money now. Another name in this list is Vedanta which was a very stable company and still is,
But everyone felt very surprising, their decision to delist, if only one million in 5 months When the dollar company came down to delist its shares, what was the company doing for so many days? Where are their provisions and safety features? Or is it some other story through which the promoters have confirmed that Vedanta will emerge as a multibagger share in the coming days? The entire Article will give, and try to understand how the small investors have to fight together and understand the big players game in the market.
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Ramayana of Vedanta Delisting Failure
Friends Corona lockdown started on March 23, and May Bay was the country’s largest mineral and mining firm, Vedanta said that he will withdraw his shares from the market, that is, he will delist. Delisting process The reverse was going to happen through the book building process. The price of delisting was fixed 87.5 per share and the debt was fixed on October 5-9. Delisting means any company going back from public to private. This process is the exact opposite process of bringing an IPO. To delist, Shareholders get their shares back The company has to pledge.
According to the regulation of delisting (Regulation 17 1 (s)), in order to be successful the process of delisting, Promoter holding should be more than 90%, ie the holders will have to pledge the remaining 90% shares back to the company. Now you can understand that this process is voluntary, that is, if the holders do not pledge, If they feel that they are losing due to delisting then they will not pledge, and only then, Delisting will be failure ( Vedanta Delisting Failure ). And after the delisting procedure done last week, now it has come to the notice that the total shares have been pledged by the company, It is less than 90%. Hence delisting has spread.
Why did Vedanta Delisting Failure?
First understand why the Vedanta Delisting Failure. Vedanta’s share price started falling 1 week before lock down Announcement, Price reached 67-68 dollar per share in March Last Week, then when delisting announcement happened, That is, by May 2020, the share price had crossed the 89 dollar, but the delisting price was kept at 87.5.
It was a big reason that Public did not trust Vedanta’s assessment and price. People felt that even if the share price of Vedanta is increasing and the studios are increasing in lock down, Then when the demand for lock down will open, then the demand will increase further, Then why to sell the shares back at the discounted price? This was a very valid question and Vedanta could not answer this question and that is why the delisting spread. Vedanta Delisting Failure
Now what next Vedanta Delisting Failure
Now the direct question is what will happen next? Vedanta has 5 working days – since 9th October,
As long as they report that status of delisting will not accept delisting, Or will offer a new one. If the new offer is also around 87.5, then it will also fail. other side, The shares of Vedanta were quite running, after trading on 137 shares per share on 6th October, today the stock is at 99.75 and it is set to have lower circuit.
Keep one thing in mind here. This lower circuit is not for company performance, It has started from this news that Vedanta’s delisting has failed. And this is not some very bad news, Then what is the matter? Why is such an investor sentiment fluctuating? Experts have something else to say about this.
“Vedanta Delisting Failure“
What do the experts say?
On behalf of Manjas and Associates Lallap it has been said that some insider trading chances are seen here. Insider trading means when some investors know about major information such as delisting failure, Then they can take advantage of their issue, such as after liquidity, they can raise shares for less money, this information is done by other investors Due to lack of it, it is against trading rules and regulations and is called insider trading.
So, according to experts, the delisting process is a very difficult process, in which being successful is almost impossible. So why did Vedanta try delisting despite knowing this? Experts say they knew that delisting would happen, And because of that the share price will fall, then you will be able to raise more shares for less money, who will have insider information that the company is going to profit in the future. And like this maybe here, Some people are saying that there may be insider trading, if the delisting fails, maybe SEBI will also probe insider trading.
SAMCO Research, KRChoksey Research have all believed that this is a good chance to get high voice stocks at a low price.
Why the commodity market will go up in the next 10 years, Vedanta’s business domain is the commodity market.
And after the coronation of Corona, the access demand is about to arrive. According to this, Vedanta’s Revenue and PAT can grow at a rate of 1.3% and 4.3% CAGR from FY 20 to FY22.
According to Angel Broking’s advisory, the reverse book building process brings Vedanta’s share price closer to the stock at 320,
Now it remains to be seen whether the company announces something like this till October 15.
Citigroup has given a call but has increased the price from Rs 130 to Rs 150,
And said that due to non-address of minority shareholder Cairns, both the pressure will come on the stocks.
CLSA has given the tag of ootperform to Vantaa and reduced the price target to 118 from 133.
He says that the company’s debt issues can put negative effects in the near term.
But all agree with one thing that in the long term this company will go ahead. Special Vedanta
● expansion in zinc capacity,
● cost reduction in aluminum
● ramp-up in the oil and gas segment
Due to such features, the company will go up after 2022, so maybe this is a stock that will become a multibagger,
I gave you the first information for it so that you can stay ahead, get away from panic and connect with actual information,
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