Vedanta sets Rs 236 crore

Anil Agarwal promoted Vedanta Resources Plc has offered a maximum of Rs 105 per share to buy back shares from the general public amounting to 20% stake in its BSE-listed subsidiary Madras Aluminium Company (Malco).

Vedanta currently owns 80% stake in the company.

The minimum floor price in accordance with Indian regulations is Rs 74.77 per share, Vedanta said in a filing with the London Stock Exchange.

The company will spend a maximum of Rs 236 crore to buy back 2.25 crore shares owned by the public. The buyback will begin on March 17 and end on March 20.

The offer is being made by Twin Star Holdings, a wholly owned subsidiary of Vedanta.
Malco had called for an extraordinary general meeting (EGM) on February 18 to discuss the delisting. The members of the EGM had granted in principle approval to the proposal of voluntary delisting of its equity shares.

The offer of Rs 105 per share is a 10.5% premium on its closing price on the BSE on Thursday. The stock hit its 52-week high of Rs 224.8 per share on September 10 and crashed to Rs 34.5 per share, its 52-week low on November 11.