Vedanta Limited (the Company; NYSE: VEDL) announces its intention 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 pursuant to the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") upon satisfying the relevant criteria.
Upon delisting of its ADS program, the Company will 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.
The Company further announces that it intends to terminate its ADS program and the corresponding deposit agreement pursuant to which the ADS program is maintained. In accordance with the deposit agreement, Citibank, N.A. will provide a 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. 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 in accordance with the deposit agreement.
Following the distribution of the formal notice of termination of the deposit agreement, Holders of the Company's ADSs will have at least 61 days to decide whether to retain their interest in the equity shares of the Company. At any time, on or prior to December 8, 2021, ADS holders may surrender their ADSs in exchange for the underlying ordinary shares of the Company. Please be advised that holders who surrender their ADSs (or the certificates evidencing such ADSs, if applicable) for cancellation will be able to take possession of the corresponding equity shares in book-entry form only and, as a result, they must have, or establish, a custodian or brokerage (demat) account in India to receive such equity shares prior to surrendering their ADSs to Citibank, N.A. for cancellation. Establishing such custodian or brokerage (demat) account may be subject to delay as a result of operational procedures and as the opening of such account may be subject to regulatory approvals in India. For more information on requirements and process of establishing a demat account, please visit the Company's website at www.vedantalimited.com.
As soon as practicable on or after December 9, 2021, Citibank, N.A. may sell the equity shares underlying any ADSs that have not theretofore been surrendered in accordance with the deposit agreement. Citibank, N.A., shall thereafter hold un-invested the net proceeds of any such sale, for the pro-rata benefit of the holders of any such then-outstanding ADSs and promptly remit the net proceeds to such holders of ADSs through the payment mechanism of DTC. The ADS will be deemed cancelled and terminated from the date of the cancellation of the ADSs resulting from the sale of the underlying equity shares.
Please be advised that the proceeds from the sale of the equity shares by Citibank, N.A. will be subject to Indian withholding taxes of up to 43.68% in addition to all applicable fees, taxes and expenses in accordance with the deposit agreement. ADS holders should consult their tax advisors about the application of the U.S. federal tax rules to their particular circumstances as well as the state and local, foreign and other tax consequences to them of the ownership and disposition of ADSs or equity shares. Holders of ADSs are encouraged to present their ADSs to Citibank, N.A. for cancellation on or before December 8, 2021. ADS holders who are subjected to withholding taxes on proceeds from the sale of their equity shares may be eligible to reclaim some or all taxes so withheld. Please note that neither Citibank, N.A., nor its local equity share custodian, Citibank, N.A. - Mumbai, will provide assistance in the tax reclaim process in connection with any such sale of equity shares or any other transaction contemplated herein. ADS holders are advised to consult a tax professional for assistance with respect to reclaiming any excess taxes withheld.
The Company reserves the right to delay these filings or to withdraw them prior to their effectiveness, and to otherwise change its plans in this regard.
Shares of Vedanta Limited was last trading in BSE at Rs. 299 as compared to the previous close of Rs. 294.7. The total number of shares traded during the day was 2187834 in over 5674 trades.
The stock hit an intraday high of Rs. 302.4 and intraday low of 298. The net turnover during the day was Rs. 650894784.