Award-Winning Vedanta Delisting. Will my money be locked? for
Award-Winning Vedanta Delisting. Will my money be locked? for
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Vedanta Delisting. Will my money be locked? |
Vedanta Delisting. Will my money be locked? Hi guys Sierra
channel an array here and I welcome you all to a special video which
is about the Vedanta delisting and this is a video on demand from you
all I'm sure this big buzz about Vedanta delisting is because of two
three things number one it's a nifty 50 stop which is getting be
listed it's not any Sunday stock which is getting delisted number one
number two very important is that I feel that many of you have
already invested in
the stock and that is why you are getting the feeling you you might get worried why not that what will happen to my money if this stock really want to get delisted will anyone ask me as a shareholder before
the company opts for this delisting do you feel that this is going to be just a one day process of one-day resolution which will be passed and then it will be an endgame no it will not be
so there has to be a big process SEBI has its own listing as well as d listing regulations there is a big process through which
the company has to go and then a company gets delisted just for your information a company named as s sorrow also got be listed in 2018 and believe it or not, it took more than four years for it to complete the entire D listing process
so don't be under
the impression that there a piece of news came up about whether Anthony listing and is gonna be all over no
so what I thought was that instead of telling about who is Vedanta who is the parent company what is the main business what are
the product mix and all that like a typical fundamental analysis the video I personally thought that this video should not be like a fundamental analysis video of Vedanta I think this video should tackle
the big question which is there in your mind right now that will this delisting really happen will it happen immediately if I were asked my opinion on whether the share should get destroyed or not whether I should say yes Kabul hey Barr whether I should say no I don't want it so I think we are going to focus on
the procedure to be listing and we are going to answer the very important question that if I were asked then what should be my answer right
so let's start the very first thing is a board meeting okay so in principle board has to give up approve yes we are ready for
the delisting and this the board meeting is going to happen on 18th of May okay everyone also might have read in
the news that an indicative price of 87 points 5 rupees has been declared by the company okay now what is this indicative price is this the final price no the what itself is saying it's an indicator price
so say we again have its own rules regulations norms whatever we call we're in under these rules and indicative price is fixed okay this is just like a guideline price okay this is not yet the final price okay
so just take this as your traditional information indicator price has been fixed as of now
the board meeting is going to happen on the 18th of May where the Board of Directors will decide amongst themselves that really whether true should we go ahead with
the listing what if they say yes we will go ahead with the listing number one then they not too intimate the stock exchanges that yes board of directors has given a primary approval now who was the second authority to whom the the the final approval has to be asked it is V the shareholders okay then
so first the step was to board a resolution second one was communicated to the stock an exchange that yes board has given the approval third people like you and me or
the domestic institutional investors foreign institutional investors foreign portfolio investors their opinion will also be asked at a special resolution okay not an ordinary resolution holding the resolution is where more than 51% of people have to agree okay this is not an ordinary resolution of 51% this is a special resolution which has to be passed okay this has to be passed by the shareholders and if
the shareholders are gonna do this then again it will be intimated to the stock exchange that in the principle they are agreeing to this now please wait you are we talking about at what price you are we talking about what will be
the floor price what will be the ceiling nothing this is just a basic yes or most subject to terms and conditions okay
so if in the principle it sells shareholders say you tell us whatever price we are not ready for the listing okay, in this case,
the process of the losing the end is here itself, okay but if she will not say that wait we may considered a listing tell us what price okay we would be interested to know the price
so just as a wild example, I am giving you let us say tomorrow not over in in in time in future time if the company says today price is 87 rupees this is just an example if a company says that we are agreeing to offer you
the chef's at 250 rupees per share you you give us your chest okay and we are ready to pay 250 rupees per share then is that okay then some shareholders might say yes for those who have bought
the share at maybe 150 hundred sixty they might say that okay yes why not okay
so you're just an in-principle I hope you are understanding this year we are not talking about the price
the stock and that is why you are getting the feeling you you might get worried why not that what will happen to my money if this stock really want to get delisted will anyone ask me as a shareholder before
the company opts for this delisting do you feel that this is going to be just a one day process of one-day resolution which will be passed and then it will be an endgame no it will not be
so there has to be a big process SEBI has its own listing as well as d listing regulations there is a big process through which
the company has to go and then a company gets delisted just for your information a company named as s sorrow also got be listed in 2018 and believe it or not, it took more than four years for it to complete the entire D listing process
so don't be under
the impression that there a piece of news came up about whether Anthony listing and is gonna be all over no
so what I thought was that instead of telling about who is Vedanta who is the parent company what is the main business what are
the product mix and all that like a typical fundamental analysis the video I personally thought that this video should not be like a fundamental analysis video of Vedanta I think this video should tackle
the big question which is there in your mind right now that will this delisting really happen will it happen immediately if I were asked my opinion on whether the share should get destroyed or not whether I should say yes Kabul hey Barr whether I should say no I don't want it so I think we are going to focus on
the procedure to be listing and we are going to answer the very important question that if I were asked then what should be my answer right
so let's start the very first thing is a board meeting okay so in principle board has to give up approve yes we are ready for
the delisting and this the board meeting is going to happen on 18th of May okay everyone also might have read in
the news that an indicative price of 87 points 5 rupees has been declared by the company okay now what is this indicative price is this the final price no the what itself is saying it's an indicator price
so say we again have its own rules regulations norms whatever we call we're in under these rules and indicative price is fixed okay this is just like a guideline price okay this is not yet the final price okay
so just take this as your traditional information indicator price has been fixed as of now
the board meeting is going to happen on the 18th of May where the Board of Directors will decide amongst themselves that really whether true should we go ahead with
the listing what if they say yes we will go ahead with the listing number one then they not too intimate the stock exchanges that yes board of directors has given a primary approval now who was the second authority to whom the the the final approval has to be asked it is V the shareholders okay then
so first the step was to board a resolution second one was communicated to the stock an exchange that yes board has given the approval third people like you and me or
the domestic institutional investors foreign institutional investors foreign portfolio investors their opinion will also be asked at a special resolution okay not an ordinary resolution holding the resolution is where more than 51% of people have to agree okay this is not an ordinary resolution of 51% this is a special resolution which has to be passed okay this has to be passed by the shareholders and if
the shareholders are gonna do this then again it will be intimated to the stock exchange that in the principle they are agreeing to this now please wait you are we talking about at what price you are we talking about what will be
the floor price what will be the ceiling nothing this is just a basic yes or most subject to terms and conditions okay
so if in the principle it sells shareholders say you tell us whatever price we are not ready for the listing okay, in this case,
the process of the losing the end is here itself, okay but if she will not say that wait we may considered a listing tell us what price okay we would be interested to know the price
so just as a wild example, I am giving you let us say tomorrow not over in in in time in future time if the company says today price is 87 rupees this is just an example if a company says that we are agreeing to offer you
the chef's at 250 rupees per share you you give us your chest okay and we are ready to pay 250 rupees per share then is that okay then some shareholders might say yes for those who have bought
the share at maybe 150 hundred sixty they might say that okay yes why not okay
so you're just an in-principle I hope you are understanding this year we are not talking about the price
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Vedanta Delisting. Will my money be locked? |
Vedanta Delisting. Will my money be locked? it is just an in in
principle yes or no okay
so if shareholders say yes okay in principle we don't have any problem with
the big listing but subject to terms and conditions we would also like to know
the price and all that okay yeah if they say yes then again it is communicated to the exchange
so till now four steps board approval communication to the exchange shareholders approved communication to
the exchange okay now what happens after this a merchant banker is appointed okay merchant a banker is generally a person who is the with the in-charge person of
the st. Pat process and those who know the IPO process again for the IPO also a merchant banker is appointed much in my car is the one who actually leads through the front the entire process okay
so you're also the entire delisting process who will be the captain of this who will be running this entire show
the entire procedures who will be fulfilling that it is going to be
the merchant banker okay
so he's going to do all you know bhagam bhag econ do come getting approvals meeting with the investors and all that everything will be done by the virtual Michael okay you're a reverse book building
the process is started by the most merchant banker okay what is the reverse book building process in short just in one or two sentences to understand the reverse book building process here
the merchant banker tries to understand what is the price at which investors might agree to give the chef's okay
so in our example what was the price 250 how will the company come to know about
the expectation of the shareholders how would the company come to know
so that is why I appoint a merchant banker is like the captain will now start
the entire process he will be leading the entire team and the reverse book building process will start through this process in
the entire process up there will be a price discovery okay we call this a surprise discovery mechanism people's expectations are actually checked in this entire process okay by
the way I've explained this entire process of what is a book building in my basics of stock market lecture series so if you want to have a look at these lectures I think you should visit my website Russian are on a date calm okay
so coming back to our discussion reverse book building
the process will take place and after this process of flow price flow price means what a base price will be fixed okay right
so flour price is fixed in principle approvals are received then what next we can imagine what could happen okay flow price is fixed as you mad 120 rupees this is an example okay company says okay we are ready to let's go ahead beds are placed and after
the bids are placed and then the company says array we don't have enough money okay might be a problem right
so before this application thing starts before all these application for bid start an escrow account has to be opened okay what is it is broker escrow code is basically an account with a special purpose okay and money can be withdrawn from this account only for that specific purpose for which
the account has been created okay for IP also an escrow contest is opened now what happens and just quickly give you a comparison in IP what happens the company opens an escrow account in this escrow account people like you and me who build for
the IPO deposit money in this escrow account okay now what will happen in case of Adi listing exactly with AH in IPO who was who was keeping who was depositing money in this escrow account it was
the shareholders who are depositing money okay in a reverse book in a reverse book building or in a not building sorry inner in a demon oh my god in AD be listing okay not in a listing in a D listing process what is it going to happen the promoters are asking for
the chefs and who is going to pay money to whom promoter is going to pay money to the shareholders
so will they directly give money to the Sheeran us no promoter has to keep money in the escrow core now
so it's exactly the reverse way than listing during listing shareholders keep money in this account and promoter issues,
the shares in are a listing promoter keeps money in this account and people like you and me shareholders will give their shares exactly the reverse scenario
I hope this is also clear right
so now what happens is that escrow account is also open right now a public announcement will be made an okay public announcement of what what is
the floor price what are the opening and closing dates of the offer how will the offer take place which is
the stock exchange name of the stock exchange example BAC NSA both from there the share will get be listed what is
the name of
the merchant maker what are the details of the merchant banker what are the
so if shareholders say yes okay in principle we don't have any problem with
the big listing but subject to terms and conditions we would also like to know
the price and all that okay yeah if they say yes then again it is communicated to the exchange
so till now four steps board approval communication to the exchange shareholders approved communication to
the exchange okay now what happens after this a merchant banker is appointed okay merchant a banker is generally a person who is the with the in-charge person of
the st. Pat process and those who know the IPO process again for the IPO also a merchant banker is appointed much in my car is the one who actually leads through the front the entire process okay
so you're also the entire delisting process who will be the captain of this who will be running this entire show
the entire procedures who will be fulfilling that it is going to be
the merchant banker okay
so he's going to do all you know bhagam bhag econ do come getting approvals meeting with the investors and all that everything will be done by the virtual Michael okay you're a reverse book building
the process is started by the most merchant banker okay what is the reverse book building process in short just in one or two sentences to understand the reverse book building process here
the merchant banker tries to understand what is the price at which investors might agree to give the chef's okay
so in our example what was the price 250 how will the company come to know about
the expectation of the shareholders how would the company come to know
so that is why I appoint a merchant banker is like the captain will now start
the entire process he will be leading the entire team and the reverse book building process will start through this process in
the entire process up there will be a price discovery okay we call this a surprise discovery mechanism people's expectations are actually checked in this entire process okay by
the way I've explained this entire process of what is a book building in my basics of stock market lecture series so if you want to have a look at these lectures I think you should visit my website Russian are on a date calm okay
so coming back to our discussion reverse book building
the process will take place and after this process of flow price flow price means what a base price will be fixed okay right
so flour price is fixed in principle approvals are received then what next we can imagine what could happen okay flow price is fixed as you mad 120 rupees this is an example okay company says okay we are ready to let's go ahead beds are placed and after
the bids are placed and then the company says array we don't have enough money okay might be a problem right
so before this application thing starts before all these application for bid start an escrow account has to be opened okay what is it is broker escrow code is basically an account with a special purpose okay and money can be withdrawn from this account only for that specific purpose for which
the account has been created okay for IP also an escrow contest is opened now what happens and just quickly give you a comparison in IP what happens the company opens an escrow account in this escrow account people like you and me who build for
the IPO deposit money in this escrow account okay now what will happen in case of Adi listing exactly with AH in IPO who was who was keeping who was depositing money in this escrow account it was
the shareholders who are depositing money okay in a reverse book in a reverse book building or in a not building sorry inner in a demon oh my god in AD be listing okay not in a listing in a D listing process what is it going to happen the promoters are asking for
the chefs and who is going to pay money to whom promoter is going to pay money to the shareholders
so will they directly give money to the Sheeran us no promoter has to keep money in the escrow core now
so it's exactly the reverse way than listing during listing shareholders keep money in this account and promoter issues,
the shares in are a listing promoter keeps money in this account and people like you and me shareholders will give their shares exactly the reverse scenario
I hope this is also clear right
so now what happens is that escrow account is also open right now a public announcement will be made an okay public announcement of what what is
the floor price what are the opening and closing dates of the offer how will the offer take place which is
the stock exchange name of the stock exchange example BAC NSA both from there the share will get be listed what is
the name of
the merchant maker what are the details of the merchant banker what are the
details of
the escrow account what will happen to the shareholding pattern after day listing all these things except traction all these things will be given in the public announcement okay okay till here
the escrow account what will happen to the shareholding pattern after day listing all these things except traction all these things will be given in the public announcement okay okay till here
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Vedanta Delisting. Will my money be locked? |
Vedanta Delisting. Will my money be locked? what will happen
first, be only approval then intimation to exchange then shareholders
approval individual to
the exchange then merchant banker appointed the reverse book building process is done then floor price determined escrow account opened by
the promoter kept money in this account okay then a public announcement will be made wearing all this all these details will be given now what happens is that once public
the announcement is made then the letters of offer are dispatched okay now what do we mean by later offer promoter is offering now we are offering you all to give us back your shares okay wherein you'll apply for this D listing now
so now what happens is that there'll be the dispatch of this
I mean a letter of offer will be dispatched and he heard that chill bidding starts
so you can imagine you are
the shareholder of the company you will receive a letter they're shareholder do you want to build for the delisting Cepheus at what price something like this okay now this is
the big question okay this is where the actual bidding has started now you have you can imagine just imagine holding that letter of opera in your hand
the company is asking you whether you are ready to give back your shares and if he has at what price are you ready
the big question herein your mind is should you say yes or should you say no what do will happen if you say yes or what will happen if you say no understand
the process can still fail here at this point of time if 90% of the people okay 90% of the people say no okay if 90% of
the people say that whatever price you are offering we are not agreeing to this
so we don't want to go ahead with this delisting stuff Chatham delisting
the process ends here okay so now you are saying that Wow I have the opportunity of being in that in that 90% okay
so so maybe isolate the reverse well let me just clarify this 90% of
the people should say yes we are ready for the D listing and then and only then this B listing will take place okay I'm not sure what I said in the flow
so let me just clarify one last thing if 90% of people say yes we agree for
the delisting then only this D listing will take place okay
so if I were asked should I say yes or should I know to say no number one number two does my what really counts or not okay how much how much is retail individual investors really have the power okay do you want to know
the sad truth is that retail individual investors have no power in this case in this case specifically why understand I readout
the shareholding pattern of Vedanta Pali the promoter holding promoter and promoter group companies only are 50 point one four percent promoters
so, of course, they're going to say yes for the DAC so 50.1% gone question is how much do retail in investors hold retail individual investors are those shareholders who hold shares worth less than two lakh rupees okay
so for example I want chefs worth rupees I want only ten chefs of Vedanta I go into
the RIAA category retail individual investors category this RI-right the category is only seven-point two six percent only seven-point two six percent off
the retail individual investors in within them what about high net worth individuals who have shares worth more than two lakh rupees but
they're individuals there they are not institutions they only point twenty-eight percent of the entire Olli okay
so if you calculate roughly it is seven point five four percent seven point five four percent which is there with the individual investors
so if all
the individual investors also say no we are not ready for this delisting still nothing is going to happen why because we are still within that ten ten percent category now
so you can imagine this what about balance who holds the balance suit is
the domestic institutional investors like mutual funds insurance companies whatever it could be other fund houses right it could be foreign institutional investors it could be a foreign portfolio investors
so one more time who owned our other domestic institutional investors, like
I said, could be mutual funds could be insurance companies number two it is foreign institutional investors number three it is foreign portfolio investors who put together all these big investors who put together holder forty-two point three two percent shares in
the company in simple words do we need to really worry about the delisting even if
I say now I don't want this your opinion as good as is not going to matter unfortunate story but this is the truth that is why I thought of telling this to you okay
so this is about what
the entire shareholding has got blue with the decision I hope you understood this
so in simple words promoters that the 50.1 four percent yes
the second one is if B is FB i--'s and if is agree all of them agree and if even if all
the shareholders we don't agree still delisting will take this because they have achieved more than 90% saying yes okay
I hope this is absolutely clear if this is successful if all put together more than 90% said yes we are ready with this then
the final price will be determined okay once the final price is
the exchange then merchant banker appointed the reverse book building process is done then floor price determined escrow account opened by
the promoter kept money in this account okay then a public announcement will be made wearing all this all these details will be given now what happens is that once public
the announcement is made then the letters of offer are dispatched okay now what do we mean by later offer promoter is offering now we are offering you all to give us back your shares okay wherein you'll apply for this D listing now
so now what happens is that there'll be the dispatch of this
I mean a letter of offer will be dispatched and he heard that chill bidding starts
so you can imagine you are
the shareholder of the company you will receive a letter they're shareholder do you want to build for the delisting Cepheus at what price something like this okay now this is
the big question okay this is where the actual bidding has started now you have you can imagine just imagine holding that letter of opera in your hand
the company is asking you whether you are ready to give back your shares and if he has at what price are you ready
the big question herein your mind is should you say yes or should you say no what do will happen if you say yes or what will happen if you say no understand
the process can still fail here at this point of time if 90% of the people okay 90% of the people say no okay if 90% of
the people say that whatever price you are offering we are not agreeing to this
so we don't want to go ahead with this delisting stuff Chatham delisting
the process ends here okay so now you are saying that Wow I have the opportunity of being in that in that 90% okay
so so maybe isolate the reverse well let me just clarify this 90% of
the people should say yes we are ready for the D listing and then and only then this B listing will take place okay I'm not sure what I said in the flow
so let me just clarify one last thing if 90% of people say yes we agree for
the delisting then only this D listing will take place okay
so if I were asked should I say yes or should I know to say no number one number two does my what really counts or not okay how much how much is retail individual investors really have the power okay do you want to know
the sad truth is that retail individual investors have no power in this case in this case specifically why understand I readout
the shareholding pattern of Vedanta Pali the promoter holding promoter and promoter group companies only are 50 point one four percent promoters
so, of course, they're going to say yes for the DAC so 50.1% gone question is how much do retail in investors hold retail individual investors are those shareholders who hold shares worth less than two lakh rupees okay
so for example I want chefs worth rupees I want only ten chefs of Vedanta I go into
the RIAA category retail individual investors category this RI-right the category is only seven-point two six percent only seven-point two six percent off
the retail individual investors in within them what about high net worth individuals who have shares worth more than two lakh rupees but
they're individuals there they are not institutions they only point twenty-eight percent of the entire Olli okay
so if you calculate roughly it is seven point five four percent seven point five four percent which is there with the individual investors
so if all
the individual investors also say no we are not ready for this delisting still nothing is going to happen why because we are still within that ten ten percent category now
so you can imagine this what about balance who holds the balance suit is
the domestic institutional investors like mutual funds insurance companies whatever it could be other fund houses right it could be foreign institutional investors it could be a foreign portfolio investors
so one more time who owned our other domestic institutional investors, like
I said, could be mutual funds could be insurance companies number two it is foreign institutional investors number three it is foreign portfolio investors who put together all these big investors who put together holder forty-two point three two percent shares in
the company in simple words do we need to really worry about the delisting even if
I say now I don't want this your opinion as good as is not going to matter unfortunate story but this is the truth that is why I thought of telling this to you okay
so this is about what
the entire shareholding has got blue with the decision I hope you understood this
so in simple words promoters that the 50.1 four percent yes
the second one is if B is FB i--'s and if is agree all of them agree and if even if all
the shareholders we don't agree still delisting will take this because they have achieved more than 90% saying yes okay
I hope this is absolutely clear if this is successful if all put together more than 90% said yes we are ready with this then
the final price will be determined okay once the final price is
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Vedanta Delisting. Will my money be locked? |
Vedanta Delisting. Will my money be locked? determined then
finally, the final application will be given to
the stock ex
change to delist the shares and within one year the process will be completed I hope you understood the entire process from start to end now the final point is
the conclusion the okay conclusion is that I okay I hope
I need not wrap it up but just quickly in like 20 20 25 seconds first board approval then shareholders approval then communication with the exchanges cutting it short okay then merchant bankers will be appointed that bookbinding starts then a final announce
the floor the price will be decided announcement will be made you will receive
the letter you will feel you will get that awesome feeling that he asked
I only asked for my opinion but unfortunately though your opinion is not going to count because all retail individual investors put together are barely seven and a half percent okay
so if all these big players say yes and again okay and if this happens final price is decided the application is made to
the stock exchange to delist okay as a conclusion, I think you need to know two points before we conclude okay number one is if I still want okay if I still want that good to order
I'm not ready to give my shares for day listing than what okay in this case if you feel that if you still want to hold on to the chef's is this a lot answer is yes you can still hold on to this but
the second point what will happen if you hold on to the ships if you hold on to
the shares it will be an investment which has as good as zero liquidity means what if after three years if you feel that oh my god
I am in need of money let me set up these Vedanta chefs where are you going to sell it stock exchange mates not going to be listed at that thing correct now we have no choice but sell it back to
the promoters but promoters I mean how are you want to contact the promoters how will they agree to your offer and I mean I mean this is as good as impossible
so one last piece of advice from me if 90% approval is received go ahead and give your ships full day listing because what is
the biggest problem is that at the end if you still remain stubborn if you don't give your shares for the listing liquidity you will not be in a position to sell
the shares when you want to sell it ok I hope you understood this I have short this at one take I hope you like this entire content I told you that
I am trying to do this without any editing they are teaching without any graphics I just wanted to do this one time
so I just thought of doing this for you so I hope you enjoyed this entire lecture do let me know in
the comments section if you still have any doubts and I'll be happy to solve them nothing for my side guys Jen and bye-bye
the stock ex
change to delist the shares and within one year the process will be completed I hope you understood the entire process from start to end now the final point is
the conclusion the okay conclusion is that I okay I hope
I need not wrap it up but just quickly in like 20 20 25 seconds first board approval then shareholders approval then communication with the exchanges cutting it short okay then merchant bankers will be appointed that bookbinding starts then a final announce
the floor the price will be decided announcement will be made you will receive
the letter you will feel you will get that awesome feeling that he asked
I only asked for my opinion but unfortunately though your opinion is not going to count because all retail individual investors put together are barely seven and a half percent okay
so if all these big players say yes and again okay and if this happens final price is decided the application is made to
the stock exchange to delist okay as a conclusion, I think you need to know two points before we conclude okay number one is if I still want okay if I still want that good to order
I'm not ready to give my shares for day listing than what okay in this case if you feel that if you still want to hold on to the chef's is this a lot answer is yes you can still hold on to this but
the second point what will happen if you hold on to the ships if you hold on to
the shares it will be an investment which has as good as zero liquidity means what if after three years if you feel that oh my god
I am in need of money let me set up these Vedanta chefs where are you going to sell it stock exchange mates not going to be listed at that thing correct now we have no choice but sell it back to
the promoters but promoters I mean how are you want to contact the promoters how will they agree to your offer and I mean I mean this is as good as impossible
so one last piece of advice from me if 90% approval is received go ahead and give your ships full day listing because what is
the biggest problem is that at the end if you still remain stubborn if you don't give your shares for the listing liquidity you will not be in a position to sell
the shares when you want to sell it ok I hope you understood this I have short this at one take I hope you like this entire content I told you that
I am trying to do this without any editing they are teaching without any graphics I just wanted to do this one time
so I just thought of doing this for you so I hope you enjoyed this entire lecture do let me know in
the comments section if you still have any doubts and I'll be happy to solve them nothing for my side guys Jen and bye-bye
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