Vedanta group’s failed attempt at delisting an India-listed entity has triggered a debate on rules concerning efforts by a foreign promoter to take an India-listed company private, with some officials questioning the ‘FDI’ tag used for such a move and the limited disclosures made through the official stock exchange route.
Some experts, however, pointed out that the RBI defines it as an FDI (foreign direct investment) if an investment is made by anyone residing outside India through capital instruments into a listed Indian company for a stake of 10 per cent or more.
Officials also said the delisting price offered by the group, as indicated by the overall “FDI” amount of $3.15 billion, amounted to about Rs 140 per share, which was less than half the price of as high as Rs 320 per share desired by institutional investors including state-run LIC (Life Insurance Corp of India) going by their bids.
