MUMBAI: Metal tycoon Anil Agarwal has revised the open offer to acquire shares in his flagship Indian company Vedanta to Rs 15,300 crore from the earlier Rs 5,948 crore.
He has also offered to buy 17.5% of Vedanta from public shareholders as against the earlier 10%. The new open offer price — Rs 235 a share — is 47% higher than the previous open offer price of Rs 160 apiece.
This is Agarwal’s latest attempt to shore up his holding in Vedanta, a key company of his business empire. The open offer will start on March 23 and close on April 7.
Last October, Agarwal had looked at delisting Vedanta from the Indian bourses, but his attempt was unsuccessful. He then acquired Vedanta shares through block deals, thus increasing his stake by 5% to 55%. Later in January, he announced a Rs 5,948-crore open offer to acquire 10% of Vedanta.
Securities market Rules allow a promoter with a stake of over 25% but less than 75% to acquire up to 5% stake in his company through creeping acquisition in a fiscal year. For additional share purchases beyond 5%, he will have to launch an open offer. Hence, Agarwal’s latest move.
The revised open offer price of Rs 235 is higher than Vedanta’s current trading price. On Tuesday, Vedanta shares closed at Rs 227 on the BSE. The promoter will have to acquire at least half the public shareholding in the company, or 90% of the total equity capital, whichever is higher to become eligible for delisting.
In a regulatory filing, Vedanta said the acquirer has decided to increase the number of equity shares to be bought in the open offer to up to 61.5 crore shares, representing 17.5% of the voting share capital — and increase the offer price to Rs 235 per share including interest of Rs 1.29 per equity share.