Vedanta's holding company confirms stake sale to reduce debt, ₹7,968 crore of shares sold in block deal

The stake sale comes just after the Vedanta group officially denied any stake sale plans after news reports alleged the same.

Published on: Jun 26, 2024, 13:43:21 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

Prefer HTon Google

Share via

Copy link

A subsidiary of Vedanta Resources named Finsider International Company Ltd has accepted to sell a 2.6% shareholding in Vedanta Ltd, CNBC-TV18 reported, quoting a Vedanta Resources spokesperson, who said this is to help reduce the company’s debt.

A bird flies past the logo of Vedanta installed on the facade of its headquarters in Mumbai (Danish Siddiqui/Reuters)

Why is the stake in Vedanta being sold?

Finsider International in February, sold 6.55 crore shares or a 1.76% stake in Vedanta Ltd, Moneycontrol wrote, citing BSE data.

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

This was when Vedanta Resources, the parent company of Vedanta Ltd, faced around $6.4 billion in debt, including a $4.5-billion debt payment to be done by the financial year 2024-25. At that time, the promoters of Vedanta Ltd. held a 63.71% of stake in it, according to the Moneycontrol article.

How many shares of Vedanta were sold today?

Around 18.5 crore shares of Vedanta Ltd, collectively worth nearly ₹7,968 crore, which is about 4.8% of the company's total equity, was sold in a block deal today, according to data available on the exchanges, CNBC-TV18 wrote. These shares were sold at an average price of ₹440, according to the article.

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

This stake sale came after the Vedanta group had officially denied any stake sale plans after news reports came up suggesting that Vedanta's promoters are planning to sell up to a 2.5% stake in the company.

What happened to the share price of Vedanta?

As a result, the share prices of Vedanta Ltd. fell by about 6.5% to an intra-day low of ₹424.50 in today's early trading sessions.

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

ABOUT THE AUTHOR
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