History
Vedanta grew from a Goa-based group of merged metals companies into an oil, metals and steel business through mergers and insolvency takeovers, then moved to leave the NYSE in 2021.
2012-2013: Building Sesa Sterlite
The story begins in May 2012, when Sterlite, the Vedanta Group's Indian metals company, filed plans for an all-share merger with Sesa Goa, MALCO, Sterlite Energy and Vedanta Aluminium to form Sesa Sterlite. Sterlite shareholders were to receive three Sesa shares for every five Sterlite shares, and Vedanta Resources plc was expected to own 58.3% afterwards. Management expected synergies worth over US$200 million a year for the first four fiscal years.
Sterlite's shareholders approved the scheme in June 2012, with 92% by value in favour. The Bombay High Court (Goa bench) approved it in April 2013, with the Madras High Court's order still awaited at that point. On 29 August 2013 Sesa Goa issued the new shares: about 1,944.5 million to Sterlite holders, about 78.7 million to MALCO holders and about 72.3 million to Ekaterina holders. Paid-up share capital rose from Rs. 869,101,423 to Rs. 2,964,674,487. The record is quiet on the following years.
2016-2017: Folding in Cairn India
In August 2016 Vedanta set out its plan to merge Cairn India, the oil and gas company in which it already held 59.88%. The terms, first set in June 2015, were revised in July 2016: each outside Cairn India shareholder would get one Vedanta share plus four 7.5% redeemable preference shares (shares that pay a fixed return and can be repaid). Vedanta Resources plc would then own 50.1%, and Cairn India's outside shareholders 20.2%.
Shareholders and creditors approved the scheme on 8 September 2016, with 99.99% by value at the court-convened meeting. The merger took effect on 11 April 2017. Cairn holders on the 27 April 2017 record date were to receive the new shares, plus an interim dividend of Rs. 17.70 per share, and Vedanta promised a third-party cash exit at par for the preference shares. Whether those shares were issued and the exit completed is not confirmed in the record.
2017-2020: New ventures and a longer licence
In December 2017 Vedanta's subsidiary Cairn India Holdings approved a c.US$158 million investment in AvanStrate, a Japanese maker of LCD glass substrate, a new line outside metals and oil. Completion needed lender consent, and it is not confirmed.
Steel followed. In March 2018 creditors chose Vedanta to take over insolvent Electrosteel Steels, and in April 2018 the National Company Law Tribunal approved its plan: INR 1,805 crore of equity and INR 3,515 crore of debt, for about 90% ownership. Regulatory approvals were still needed, and completion is not confirmed.
In October 2018 the Government approved a ten-year extension of the Rajasthan oil block contract from 15 May 2020, though whether the extension policy applies is before the courts. In January 2020 a tribunal approved Vedanta's takeover of insolvent ferro chrome producer FACOR, with Vedanta to hold 100%.
2021: Leaving New York
Shares on issue stood at 3,717,504,871 through 2018 to 2022. In September 2021 Vedanta announced it would delist its American depositary shares from the NYSE and end the programme, citing low trading volume and costs. Holders could swap into Indian shares until 8 December 2021, after which Citibank could sell what remained.
On 19 November 2021, the latest record date, the Supreme Court had ruled the day before that the Government of India could sell its entire stake in Hindustan Zinc, a Vedanta subsidiary, on the open market. It also directed the CBI to register a case over the 2002 disinvestment. No price, timing or effect on Vedanta's holding was given. Several threads, including Electrosteel's closing and the Rajasthan court challenge, remained open.
Written from the 14 story beats below (2012 to 19 Nov 2021), which come from the company's own announcements and filings.