Vedanta parent company denies stake sale plans: Report

Vedanta's promoters hold a 61.95% stake in the company, which declined from just under 70%, starting from December 2022.

Published on: Jun 23, 2024, 19:38:48 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Vedanta Resources Ltd, the parent company of the Indian listed Vedanta Ltd. has denied reports of any potential sale of stake in its subsidiary, CNBC-TV18 reported.

"Vedanta Resources strongly denies any plans to sell a stake in Vedanta Limited," a spokesperson of the parent company told CNBC-TV18 in an official response.

Also Read | Vedanta founder Anil Agarwal on how his mom inspired him to start the company: ‘I nearly gave up’

The background

On Friday, the Economic Times had reported that Vedanta promoters are planning to sell up to 2.5% of stake worth over ₹4,000 crore in the Indian listed entity, according to CNBC-TV18.

The report came just a day after Vedanta Group Chairman Anil Agarwal told CNBC-TV18 in an exclusive interaction that he has no plans to bring his stake further down from where it currently is.

“We have 62% - 61 point something percent of holding of the company and we are comfortable,” Agarwal said. “Any investment banker comes and gives me some idea, we will work on it. (But) at this point of time, there is nothing on the cards to take our holding down below 61.5%.”

Also Read | Vedanta’s Anil Agarwal recollects conversation with his bauji during his struggling years: ‘He always used to say…’

As of the last quarter of the financial year 2023-24, Vedanta's promoters held a 61.95% stake in the company. Starting December 2022, the promoter stake in Vedanta has declined from just under 70% to just over 60%, according to the article.

“I think we are very comfortable to address the debt,” Agarwal added. “We have a good cash flow and good dividend that should take care of all the debt payment of VRM.”

Also Read | Billionaire Anil Agarwal’s daughter reveals facing racism in London: ‘No one wanted to sit next to me’

The market sentiment

Vedanta shares closed with little price change on Friday at ₹469.30. The stock has risen 82% so far in 2024, making it the best calendar year performance for the stock since 2021 when the stock had doubled in value, according to CNBC-TV18.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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