New Delhi: Vedanta Resources Ltd (VRL) has given a public announcement to kick start the Reverse Book Building (RBB) process in order to delist Vedanta Ltd (Vedanta) from stock exchanges. The bidding commences on October 5 and closes on October 9.
SES has said, “Investors must ignore floor price, book value and 52-week low price as the same does not reflect true value of Vedanta shares”.
“While, SES has given guidance as to what is a fair bidding price. However, it is up to the shareholders to do proper analysis and not succumb to negative news floating around. Promoters of the Company are experienced businessmen and would love to minimize cost of acquisition. It is well within their rights to do so,” it said in its advisory to shareholders.
“And shareholders also have their right to seek a fair price, it is on this point there is a conflict between promoter and public shareholders. Shareholders must protect their value,” SES said.
SES in its report titled ‘Vedanta Delisting Offer’ dated May 13 has termed the delisting proposal of VRL as being opportunistic and unfair as the offered price at Rs 87.50/- per share is well below the fair value of Vedanta.
SES advice of SES to shareholders is that, do not be guided by what is floor price, what is book value given, what is market price or what is their purchase price.
