Vedanta will be delisted from the London Stock Exchange to remove its cloak of respectability, restore confidence in the governance of the Stock Exchange, and prevent further reputational damage to London’s financial markets from this rogue corporation.
Why this is important?
Following the death of 13 people during violent protests against the mining giant’s Sterlite copper smelter in Tuticorin, Tamil Nadu, in May, UK’s opposition Labour Party had called for Vedanta Resources to be delisted from the London Stock Exchange. Criticism against the group’s mining operations has been building up over the years and recently peaked
Stock to be impacted?
Stock has already corrected 30% from its all time high due to shutdown of operations at Tamil Nadu, this delisting will also have larger impact on the stock price. ( CMP 237, M. Cap 88246crs, 7.7 FY19 PE)