Vedanta delisting offer: Anil Singhvi asks investors to wait and not panic; to reveal strategy soon
Vedanta Limited's delisting process starts today and will remain open this week. How should the investors see this? The floor price is Rs 87.50 while the closing price is Rs 135. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here
Vedanta Limited's delisting process starts today and will remain open this week. How should the investors see this? The floor price is Rs 87.50 while the closing price is Rs 135. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here.
Singhvi said that he wished that investors get maximum price, especially the retail investors who should get the best opportunity to get the best price. How can this be done? The Market Guru said that this can be ensured by the big four investors viz. LIC, Citibank, HDFC Mutual Fund and ICICI Prudential Mutual Fund. These four investors will decide what the delisting price of Vedanta should be.
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He however, said that the valuation can be different form the view point of an investor and promoters.
He said that there are only two reasons why a company wants to get delisted – one is that the company wants to be free from the requirements of disclosures and the second and the most important reason is that the valuation of shares are much more than the stock market price. The company may want to take advantage of this, Singhvi said.
He said that a company like Vedanta may not have problems with disclosure requirements. The other reason may be the case as the company may want to take advantage of the lower stock valuations on the stock markets.
The Sebi valuation of the stock gives the floor price value of Rs 87.50. During the delisting, the company has to give high price, he added. Many investors bought this stock at Rs 250-Rs 300 and may not want to give back the shares in haste.
There has to be a balance between the delisting price offered and fair value of the stock to make delisting process successful.
He said that he did not expect the delisting to happen below Rs 200.
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Singhvi advises investors to wait for the right opportunity. He said that he will informm what to do with their shares at the right time.
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