Vedanta: Delisting price may be significantly higher, say analysts

Improving fundamentals suggest promoters of the base metals major may need to pay more; reverse book-building holds key for price discovery

With the Vedanta group completing its fundraising recently to accomplish the objective of share buyback and delisting Vedanta Limited (Vedanta) from stock exchanges, all eyes are now on the proceedings hereon, especially the delisting price. Given the indicative price and the gains posted by the stock since the announcement, the promoters may have to shell out more to take the company private.

The promoter group (led by Vedanta Resources) had given an indicative offer price of Rs 87.5 a share on May 12, which was at a discount to the previous day’s share price, as well as a 41 per cent