The watered-down offer by Vedanta Resources Ltd, led by Anil Agarwal, to buy back 17.5% of its flagship Indian company has been subscribed to 57.5%, helping it to increase its stake to around 65%.

The voluntary open offer to buy 65.1 crore of shares of Vedanta Ltd at Rs 235 each received offers for 37.42 crore of shares, or 57.49% of the size of the offer, according to stock market data.

Subscription was until 3:30 p.m. Wednesday – the last date of the open offer.

Vedanta Resources had raised the price of the open offer last month after its January offer to buy up to 10 percent of Vedanta Ltd at Rs 160 each was not received with enthusiasm.

Among the offers received, foreign institutional investors (FII) offered 20.83 crore of shares while mutual funds offered 6.38 crore of shares. Firms offered 7.04 crore shares and individual investors offered 1.6 crore of shares, according to information available on the BSE.

Considering the shares tendered, the open offer will cost Vedanta Resources Rs 8,794.37 crore.

If all of the 17.5% shares had been subscribed, it would have cost the company 15,298.5 crore rupees.

While the offering price of 235 rupees per share was around 60%, 45% and 30% premium over the 6 months, 90 days and 60 days of the volume weighted average price (VWAP), respectively, the previous offer price of Rs 160 each for 37.17 crore of shares was below Vedanta’s trading price.

Vedanta Resources’ stake in Vedanta Ltd would have increased from the current 55.1% to 72.6% if the entire offer had been subscribed. But for now, it will have to settle at 65.1%.

The open offer started on March 23 and closed on April 7.

In October of last year, Vedanta Resources failed to raise the number of shares required to remove its Indian branch from listing at the offer price of Rs 87.5 a piece.

In December, the promoters increased their stake from 50.14% to 55.11% through block trades totaling Rs 2,959 crore.

At the time of increasing its stake in December 2020, Vedanta Resources said the move was aimed at simplifying the group’s structure.

“This is in line with our stated strategic priority of simplifying the group structure to align the group’s capital and operational structures, streamlining the process of servicing the group’s funding obligations and improving a range of important credit metrics,” he said. he declares.

The simplification process – which has been underway for several years – has involved mergers of group companies and may involve further acquisitions of shares in accordance with applicable law, the company said.

During the delisting offer in October, promoters were only able to secure 125.47 crore of confirmed offers against the required 134.12 crore of shares.

Vedanta had tied up $ 3.15 billion in loans to finance the stock purchase, but returned the money to lenders as soon as the write-off offer failed.

As of December 31, LIC held 5.58% of Vedanta Ltd, while ICICI Prudential Mutual Fund and HDFC Mutual Fund respectively held 3.14% and 1.28% of the capital.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)