Vedanta rose 0.57% to Rs 315.35 at 13:22 IST on BSE in volatile trade on bargain hunting, even as the Supreme Court announced cancellation of all mining leases in Goa.
Meanwhile, the S&P BSE Sensex was down 432.16 points or 1.26% at 33,981.
On the BSE, 4.24 lakh shares were traded on the counter so far as against average daily volumes of 7.42 lakh shares in the past one quarter. The stock was volatile. The stock had hit a high of Rs 315.60 and a low of Rs 305 so far during the day. The stock had hit a 52-week high of Rs 355.70 on 29 January 2018 and a 52-week low of Rs 217.95 on 5 May 2017.
The stock had underperformed the market over the past 30 days till 8 February 2018, falling 6.35% compared with 0.06% fall in the Sensex. The scrip also underperformed the market in past one quarter, declining 3.08% as against Sensex's 3.3% rise. The scrip, however, outperformed the market in past one year, surging 25.77% as against Sensex's 21.47% rise.
The large-cap company has equity capital of Rs 371.72 crore. Face value per share is Re 1.
Shares of Vedanta had declined 8.07% in the preceding five trading sessions to settle at Rs 313.55 yesterday, 8 February 2018, from its close of Rs 341.10 on 1 February 2018.
Vedanta after market hours yesterday, 8 February 2018 said that Supreme Court of India vide judgement dated 7 February 2018 has directed to stop all mining operations in the state of Goa with effect from 16 March 2018. The Supreme Court has directed that the mining lease holders who have been granted the second renewal are given time to manage their affairs and may continue their mining operations till 15 March 2018. However, they are directed to stop all mining operations with effect from 16 March 2018 until fresh mining leases and fresh environmental clearances are granted.
Vedanta said that the company's mines in Goa will be impacted consequent to the judgement of Supreme Court. The company is assessing the financial and operational impact of the said judgement.
As per reports, India will lose nearly Rs 4000 crore ($600 million) of export value with this ban given that the low-quality iron ore is shipped at about $30 a tonne. The total banned capacity in Goa stands at 20 million tonnes per annum (MTPA), of which Vedanta operates 5.5 MTPA. Vedanta stands to lose about $165 million, or about Rs 1000 crore, in revenue from the Supreme Court's cancellation of all mining leases in Goa, reports indicated.
The Supreme Court's ruling came on a plea filed by NGO Goa Foundation that stated the leases were illegal, as per reports. The case dates back to 2012 when the Supreme Court quashed all mining leases in Goa since their 50-year term lapsed in 2007. In August 2015, licences were renewed and given extension till 2020 under the deemed provision.
Vedanta's consolidated net profit fell 8.62% to Rs 2959 crore on 22.05% growth in total income to Rs 24,934 crore in Q3 December 2017 over Q3 December 2016.
Vedanta is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc - lead - silver, copper, iron ore, aluminium and commercial power.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
