Vedanta to delist American depositary shares on New York stock exchange; Stock dives 2%

Vedanta seeks to file a Form 25 with the SEC on or about October 29, 2021, to delist its ADSs from the NYSE.

Sep 24, 2021 11:09 IST India Infoline News Service

Vedanta has announced its intention to delist American depositary shares (“ADSs”) from the New York Stock Exchange (NYSE) and terminate its respective depositary programme. The company plans to focus on all trading of its equity shares on Indian stock exchanges upon delisting.

In its regulatory filing, on Thursday, Vedanta said that "to delist (“Delisting”) its American depositary shares (“ADSs”) representing its equity shares from the NYSE and to terminate its ADS program. The Company also intends to deregister such ADSs and the underlying equity shares and terminate the reporting obligations according to the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) upon satisfying the relevant criteria."

Upon delisting its ADS program, Vedanta plans to concentrate all trading of its equity shares on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited in India (“NSE”). The Company’s Board of Directors has taken into account the recent low trading volume of its ADSs on the NYSE and the associated costs of maintaining the listing and related obligations.

Vedanta seeks to file a Form 25 with the SEC on or about October 29, 2021, to delist its ADSs from the NYSE. The Delisting is expected to become effective ten days thereafter, at which time the ADSs of the Company will no longer be listed for trading on the NYSE.

As per the statement, once the delisting has become effective and the criteria for deregistration have been satisfied, the Company intends to submit a Form 15F with the SEC to deregister the ADSs and the underlying equity shares under the Exchange Act. Thereafter, all the Company’s reporting obligations under the Exchange Act will be suspended unless Form 15F is subsequently withdrawn or denied. Deregistration with the SEC and termination of the Company’s reporting obligations under the Exchange Act are expected to become effective 90 days after its filing of Form 15F with the SEC (“Form 15 Effective Date”).

Further, Vedanta said that it plans to terminate its ADS program and the corresponding deposit agreement according to which the ADS program is maintained. Following the deposit agreement, Citibank, N.A. will provide notice of termination to all ADS holders containing the relevant information for ADS holders to take various suggested actions. The ADS program will terminate 31 days after Citibank, N.A. delivers formal notice of the termination of the deposit agreement to ADS holders.

Vedanta said that Any time after thirty days have elapsed following the termination of the deposit agreement (on or about November 8, 2021) which is expected to be on or about December 9, 2021, Citibank, N.A. may sell the equity shares of the Company underlying any ADSs that remain then-outstanding following the deposit agreement.

On Friday, at around 11.22 am, Vedanta was trading at Rs295.05 per piece down 1.7% on Sensex. The stock has touched an intraday high and low of Rs298.75 per piece and Rs293.50 per piece respectively. 

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