SMALL INVESTORS’
WELFARE ASSOCIATION
Email :
SirenBajao@gmail.com
Striking contrast
in the speed of delisting process followed VEDANTA vis-à-vis Adani Power
Vedanta:
On
12 May 2020, the parent company of Vedanta Ltd. disclosed its intention to
delist the company. The target company,
immediately on the same day informed stock exchanges at 20:19:18Hrs. about the
delisting intentions of the promoters.
On
13th May 2020 merchant banker was appointed u/r Regulations 8(1A) and 8(1D) to carry out due
diligence. On 18th May2020 Board meeting was convened to
(i)
take on record
and review the due diligence report of the Merchant Banker and
(ii)
to approve/
reject the Delisting Proposal. The Board
of directors approved the proposal.
On 25th
May 2020 Postal Ballot notice was issued.
On
25th June, 2020, Results for postal ballot shall be out.
This
is probably the fastest any delisting proposal can move. Within 13 days the
notice for postal ballot was issued by the company.
Adani Power
In
juxtaposition to Vedanta, Adani Power also declared the intention of the
promoters to delist. The time schedule so far in this case is as follows:
May 29, 2020, promoters informed the target
company about its intention to delist. Co. informed stock exchanges on the same
day.
Board meeting is convened on June 3, 2020;
inter-alia to
1. To consider the
Delisting Proposal;
2. Appointment
of a merchant banker
3. To obtain
from the Stock Exchanges, details of trading in shares of the
Company for a
period of 2 (two) years prior to the date of board meeting
by top 25
(twenty-five) shareholders along with the details of off-market
transactions of such
shareholders.
In
case of Vedanta the Merchant banker’s report was obtained within 5 days and
Board approval was obtained in 6 days of receipt of letter for delisting from
the promoters, whereas in the case of Adani Power, the only milestone reached
so far is, appointment of merchant banker. It is surprising to note that even
for asking information from stock exchange about trading in shares by the top
25 shareholders, the company thought a
board approval is required.June 14, 2020
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