Vedanta Share Delisting - Why Vedanta is Delisting from Stock Exchange | Stocks in News | EP 5

A few months ago whenever an IPO came out, everyone was interested in purchasing it. This was so that when the IPO gets subscribed on the first day, they make good profits. Recently there was a company that didn't want their shares to trade in the market and they want to delist themselves from the share market. This company is called Vedanta. In this video we have told you what the implications will be if you are a retail investor, and whether you will face a loss if you have shares of this company.

Vedanta was a company that has a business in the mining industry It used to be called Sesa sterlite and Sesa Goa ltd. Its main business is in Goa, Karnataka and Rajasthan. In January 2018, its share price 330 and today it trades at Rs 90. The biggest reason behind Vedanta not performing well for the past some time is that the corporate structure of Vedanta is very complex. If a company continues to make subsidiaries, its corporate structure becomes very complex. The biggest reason they have given for delisting themselves is that they want to simplify their corporate structure. After simplification, they will be able to identify easily where they are deriving their value from. There are two ways of a company to delist.

The first is the voluntary way when the company delist themselves because they think that they aren't able to streamline their operations well.

The second way is involuntary, when the exchange forcefully makes the company delist. There can be many regulatory reasons behind this or when the company goes bankrupt.

Vedanta has said they are giving an indicative price of Rs 8, which can be changed at any time. Book building is when the company says that they want to dilute their shares so they sell it at a certain price. Reverse book building is the opposite of that. It's when the promoter says that they want to buy the shares There is a special voting in the process of delisting which takes the investors into consideration. When the resolution is passed with majority, the delisting process will be taken forward.

Vedanta has a P/E ratio of around 4, a book value of more than 150. Its dividend yield is more than 5. Their quarter on quarter increase in sales has been almost constant. Their quarterly revenue has been around 20-25,000 crores. There is a debt of 50,000 crores on Vedanta currently. Its operating profit margin is between 25 and 30.

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Disclaimer: These are not any recommendations for any funds or stocks and are meant only for educational purposes.

[nidhichadha]

Hello Sir...I accidentally came across your video and like the way you present the topic ...making things simple.I appreciate your unbiased opinion.Thank you so much

[GAMINGHUB]

Very Informative Video...Sir, apki videos mein hamesa fully loaded knowledge hoti hai...Thank You.

[dhruvildesai]

What are are advantages and disadvantages of dividend yield to a retail investor and to a company? How to read the dividend yield as a financial parameter whether it is good or bad of a company? How are the other ratios like peg, pe and pb ratios are impacted because of dividend yield?

[monishsomani]

Thank You for constantly educating us.

[binodmohanty]

Thank you sir for releasing my concern. Please intimate update later time to time.

[arjunjani]

Question : Even after getting new price (reverse book building)... if retail investor don't want to sell, then ??? is it possible ??

[RAKESHSHARMA-rlir]

Main groww app se Vedanta mein bid nahi kar paaya. Aage Jane Kya hoga.

[srishtibajaj]

very informative video..got to learn many concepts like book building, price discovery, corporate structure, delisting process, . Keep uploading such videos pls..Thnks!!

[himanshujain]

Sir your videos are awesome

Can you provide best book for investing intermediate or beginners please sir

[kartikagrawal]

Hi There are 2 of the companies i have shares of : 1.) MoserBaer and 2.) Stone India Ltd. Both of them got delisted. I never got any mail or been contacted or given the information of delisting. I don't know, what could i have done to identify in prior to know that these companies are getting delisted, so that i would have sold the shares before delisting. Would require your suggestions here.. Thanks

[paulienkhamvaiphei]

Please make a video on the process of selling shares on zerodha with all options like stop loss etc.👍👍

[pratikmashale]

Sir how to bid for delisting on groww app?

[KN-]

Groww Stock segment me update करने की आवश्यकता हैl और कुछ new features की आवश्यकता है जैसे stoploss etc.

[sandeepkumar-ikrc]

Mutual fund pr series kab suru hogi ????

[debasismukherjee]

If I opt not to sale my shares then what will be my fate. Then am a not a owner ? My shares can be sold privately isnt it?
D Mukherjee.

[akshaychaudhari]

Sir can you make video on adanigreenEnergy stock?

[anitchoudhary]

कंपनी को लालच आ गया है शेयर सस्ता देखकर

[Rajvlogscanada]

OoooopppSir ji mai 1000 vaar puch chukka ek war ta reply kardoooo
NRI ac can open in groww or not

[debasismukherjee]

Can moving averages able to predict share price direction ?

[rajendrashinde]

Sir ji alok industry me investment karna sahi he kay