Vedanta picks up 2.4% more in Sterlite

Sterlite Industries saw a block deal of 17 lakh shares at Rs 550 a share in the morning session yesterday, which was 5.5 per cent above the previous day's closing price of Rs 521.

According to sources close to the development, the block deal representing 2.4 per cent of the company's equity was picked up by Twinstar Holdings, a wholly owned subsidiary of Vedanta Resources, the holding company of Sterlite Industries. The shares were sold by the Sterlite Employees' Welfare Trust.

According to sources, Vedanta is planning to increase its holding in Sterlite Industries to 75 per cent. The company has adopted the creeping acquisition route to increase its shareholding, which permits a maximum purchase of five per cent in a financial year.

Vedanta had recently hiked its stake in Sterlite to 60 per cent from 55.1 per cent by picking up a 4.98 per cent stake from the market.

Following the block deal, Vedanta's stake in Sterlite has risen to 68.2 per cent owing to the additional five per cent stake it owns in Sterlite through its 80 per cent subsidiary Madras Aluminium Company. Madras Aluminium holds a seven per cent stake in Sterlite.

The Sterlite Industries stock gained 2.35 per cent to close at Rs 533.25 today after touching an intra-day high of Rs 550. Total volume accounted for more than 17.43 lakh shares on the BSE. Sterlite is one of the two leading copper producers in India.

It has a domestic market share of approximately 42 per cent. Its operations include a smelter at Tuticorin in southern India, a refinery and two copper rod plants at Silvassa in western India, and two mines in Australia. The smelter and refinery each have an installed capacity of 180,000 tonne per annum (TPA).