 "Vedanta's shares dip 7% after large block deal; promoter likely seller")
Shares of Vedanta dipped 6.5 per cent to Rs 424.50 on the BSE in Wednesday’s intra-day trade after over 2 per cent equity of the company changed hands via block deals.
At 09:19 am; as many as 98.15 million shares representing 2.64 per cent of total equity of Vedanta changed hands on the BSE, the exchange data shows. The names of the buyers and sellers could not be ascertained immediately.
According to reports, Vedanta Resources plans to sell a 2.5 per cent minority stake or nearly 90 million shares in Vedanta, raising around Rs 4,000 crore for repaying debt. The sale is expected to occur at a discount of about 8 per cent to 10 per cent to its prevailing share price.
At 09:39 am; Vedanta was trading 3 per cent lower at Rs 440, as compared to 0.05 per cent rise in the BSE Sensex. A combined 226.79 million equity shares representing 6 per cent of the total equity of the company changed hands on the NSE and BSE. With today’s decline, the stock has corrected 16 per cent from its 52-week high of Rs 506.85 touched on May 22. It had hit a 52-week low of Rs 207.85 on September 28, 2023.
Thus far in the calendar year 2025, the stock price of Vedanta has outperformed the market and zoomed 71 per cent. In comparison, the benchmark index gained 8 per cent.
Vedanta and its consolidated subsidiaries are a diversified natural resource group engaged in exploring, extracting and processing minerals and oil and gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil and gas and has a presence across India, South Africa, Namibia, Ireland, Australia, Liberia and UAE. The group is also in the business of commercial power generation, steel manufacturing and port operations in India and manufacturing of glass substrate in South Korea and Taiwan.
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According to management, fiscal year 2024-25 will be a transformative year for Vedanta on many fronts. The expected completion of most expansion projects and the focus on disciplined growth, operational excellence and exploring opportunities along the value chain, position the company for greater success on all fronts including volumes, revenue, cost efficiency and bottom line.
Beyond that, the group has set targets that reflect its pursuit of sustainable growth and further improving the company’s balance sheet integrity. The management seeks to further deleverage Vedanta Resources by $3 billion over the next three years. The fundamentals supporting the sectors in which the group operates remain robust, providing an optimistic outlook.
The management further believes that the key growth projects that are on the horizon, along with the expected acceleration in commodity prices, will drive future profitability.