Read more about Vedanta Ltd fails to get enough shares to delist from stock exchanges on Business Standard. Entry into capital market easier than exit due to regulatory process, say corporate compliance firms
Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Accordingly, equity shares of and those tendered by shareholders in the offer would continue to remain listed on the exchanges, said the company in an exchange filing. Promoters of the diversified metal and mining company required 1.34 billion shares to successfully delist from exchanges. However, their five-day reverse book building (RBB) process, which ended on October 9 evening, saw only 1.26 billion confirmed bids. “The withdrawal from the process for any company acts as a catch-22 for the promoters/key people involved in the deal as it may trigger the insider trading probe in midst of fluctuating stock prices during the period coupled with the extremely cumbersome norms making it difficult, if not impossible to delist a company.
