Agarwal may see Vedanta stake rise to 65% from 55%

Agarwal may see Vedanta stake rise to 65% from 55%

(This story originally appeared in on Apr 09, 2021)

Mumbai: Metals and mining magnate Anil Agarwal will see his stake in flagship increase to 65.2% from the existing 55.1%, if he accepts all the shares tendered by minority shareholders in the open offer that closed on Wednesday.

The 67-year-old Agarwal had offered to buy 17.5% of Vedanta from public shareholders in what was his latest attempt to tighten his grip over the India-listed entity. Minority shareholders tendered 37.4 crore Vedanta shares as against the 65.1 crore Agarwal had offered to purchase, stock exchange data revealed.

The 65.2% stake in Vedanta will take Agarwal’s total promoter shareholding closer to 90%, a threshold he requires to take the company private. India’s capital market rules state that a promoter can delist the company from the stock exchanges if s/he acquires 90% of the total equity capital.

Last October, Agarwal had attempted to take Vedanta private but minority investors spoiled his plans. LIC, the largest non-promoter shareholder, quoted a price of Rs 320 apiece as against Agarwal’s indicative delisting price of Rs 87.5.

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