📷 Image Credits: The Economic Times
In recent news, the promoters of Vedanta have reportedly sold 17.1 crore shares of the company in a large block deal, resulting in a drop of 6% in the share prices. The transaction value of this deal is estimated to be around Rs 7,000-8,000 crore. The official buyers and sellers involved in this significant transaction have not been disclosed.
Anil Agarwal-controlled Vedanta Resources has been strategically planning to sell off a 2.5% stake in Vedanta Ltd through block deals in July. This move is anticipated to raise approximately Rs 4,000 crore for the company. Despite holding a majority stake in the company, Vedanta’s promoters have been gradually reducing their shareholding over time. Since December 2022, the promoter shareholding has declined from nearly 70% to just over 60%.
Furthermore, Vedanta Resources, under the guidance of Anil Agarwal, has been actively working towards reducing its debt burden. The company aims to cut its debt by $3 billion over the next three years. Notably, Vedanta Resources has witnessed several rating downgrades due to liquidity concerns and high default risk.
In a bid to strengthen its financial position, Vedanta Ltd, in the midst of a planned demerger, has outlined significant capital expenditure plans for fiscal 2025. Operationalizing coal blocks and expanding capacities for its steel and aluminium business are key areas of focus for the company, with a proposed capital expenditure of $1.90 billion. The market value of the Vedanta Group, which includes Vedanta Ltd and Hindustan Zinc Ltd, has surged by over Rs 2.2 lakh crore between March 28 and June 20, 2024, indicating significant investor confidence.
The share prices of Vedanta Ltd have demonstrated remarkable growth, doubling from their 52-week lows. Market experts attribute this positive trend to various factors, including the impending company demerger, management’s focus on restructuring initiatives, and improved profitability. Overall, the strategic sell-offs and financial restructuring initiatives undertaken by the entrepreneurs at Vedanta have generated significant market interest and investor activity, shaping the future trajectory of the company’s growth and financial stability.
