While many shareholders said they have not received the shares that they had tendered back in their demat accounts, a prominent Dalal Street broker said they shares have been credited back.
“The shares were transferred back to demat accounts of clients today morning after the delisting offer failed. Depending on your broker, you can sell them today or from tomorrow,” said the broker cited above, requesting anonymity.
“I have not received my shares. It should come back only by Tuesday,” said Ambareesh Baliga, an independent market analyst, who had also tendered the shares he owned. However, he said this could be a good buying opportunity for long-term investors.
Manager of the delisting offer, JPMorgan, refused to comment when contacted over phone. Response to an email query is still awaited.
“It’s a buying opportunity as investors have given a verdict on what should be the fair price, which is more than Rs 150. Plus, there is likely to be a dividend announcement after this fiasco,” Baliga said.
The dividend payout of Rs 4,500 crore that Vedanta received from its subsidiary Hindustan Zinc in May is yet to be passed on to the company’s shareholders. The company was hoping to do so after the delisting so that all the money could go to the cash-strapped promoters.
The stock fell 17.20 per cent to Rs 101.10 in Mumbai trading.
“I do not think investors should panic and sell because even with the buyback announcements, the stock was not really expensive even when there has been some revival in the overall commodity basket globally. Plus, if Vedanta actually pays dividend, on a dividend yield basis the stock is not very expensive,” said Sandip Sabharwal, an independent market analyst.
Baliga said Monday’s fall in the stock was mostly because speculative buyers are bailing out.
“There were a lot of people who had bought it for flipping. They bought at Rs 110-130 to exit at Rs 160. The expected exit price was above that. So they thought they would be able to exit. They are not investors, but traders. But that flipping has failed, so they have to book out. That pressure is being felt right now,” Baliga explained.
The total number of shares validly tendered by public shareholders in the delisting offer stood at 125.47 crore, which was less than the minimum number of shares required in order for the delisting offer to be successful, the company said in an exchange filings.
The promoters will not acquire any share tendered by the public shareholders through the delisting offer and all the shares tendered would be returned to the respective public shareholders, it said.