Shares of Sterlite Industries and Sesa Goa plunged sharply on Wednesday amid speculation about a possible merger of the two companies as part of a group restructuring exercise.
In a volatile day of trading, shares of Sterlite fell by as much as 7.5% to touch an intra-day low of Rs 119 on the BSE. The stock finally closed at Rs 120, down by 6.6%. The Sesa Goa shares also slipped by 5.6% to Rs 233 a piece during the day. Later it recovered some of the losses and closed at Rs 236, down 4.2%.
Analysts said that investors booked profit in both the stocks on the lack of any clarity about a restructuring exercise being undertaken by Anil Agarwal-led Vedanta group.
There have been no official word so far on any merger plans for Sterlite and Sesa Goa.
The group has, however, said that it is a stated group strategy to “simplify and consolidate” its corporate structure.
“The company reviews its strategic options on an ongoing basis and once any such option is approved, the company will submit a detailed comment,” the two companies said on Wednesday.
Shares of other Vedanta Group firms — Hindustan Zinc and Cairn India also closed in the red on Wednesday.
Hindustan Zinc ended the day at Rs 139 apiece, down 2.5%, while Cairn India closed at Rs 386 apiece, down by 1.4% on the Bombay Stock Exchange.