“No one is putting money in the market at this juncture, but we will be shelling out nearly Rs 18,000 crore for the buyout,” said Agarwal.
Vedanta closed at Rs 89.30 a share on Tuesday, up 12 per cent from the previous close on BSE. After delisting, the company’s America Depository Shares from the New York Stock Exchange would also be delisted along with deregistering the entity from the Securities and Exchange Commission.
currently carries a net debt of $10 billion, which will go to $12 billion post buyout. We plan to service debt via earnings of Vedanta, which should be about $3 billion per annum,” explained Agarwal.
But, Hindustan Zinc, a wholly-owned subsidiary of Vedanta, will continue to remain listed on the Indian bourses. “The group believes that a delisting is the next logical step in this simplification process and will provide the group with enhanced operational and financial flexibility in a capital intensive business,” the company said in its filing.