What next for Vedanta and its shareholders?

Описание: After a failure to delist, capital allocation, dividend and debt reduction by Vedanta and its promoters will be keenly watched for by the street. The company fell short of about 10 cr bids required for the delisting but even if the required bids would have come in, the likely reverse book building price of Rs. 320 would have been a bit too pricey for Vedanta had amassed a financial ammo of $3.15 bn or roughly Rs. 13-145/share. 
Nevertheless, for the shareholders who bid in their shares, the same should be released soon. Though that means that those 125 cr shares were missing in market action for today on account of them being locked in the tendering process. Once the shares are released into the investor's account, they're free to sell them in the market
But fundamentally, while the stock will continue to stay listed on the exchanges, a focus will be on how Vedanta will utilise the $3.15 bn. CLSA says discussion around capital allocation will dominate investor concern rather than operational performance. Will a buyback be considered in order to make the next attempt at delisting successful? Or will a generous dividend be doled out? Both these options are positive for minority shareholders but according to CLSA, any increase in inter company loans will be a negative. Debt reduction at Vedanta and VRL will definitely be closely watched says CLSA.
Investec says "Management’s ability to restore minority shareholders' confidence is key to retaining / re-rating trading multiples. We find failed delisting is an additional scar, in addition to recurring CG (corporate governance) issues"
An ET report also stated that SEBI may ask BSE to probe the 12 cr unconfirmed share bids for Vedanta's delisting, The regulator is likely to ask BSE to verify the source of the 12 cr unconfirmed bids. This could be another overhang on the stock.

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