Vedanta Shares Contract By 9% After Its Promoter Sells 4.3% Stake Via Block Deal

Shares of Anil Agarwal-owned Vedanta declined by 9% to Rs 248 per piece on Thursday’s trading session on BSE amid reports of Twin Star Holdings, of the promoters of the metal and mining firm, selling around 4.3% stake in the company via block deals.

The floor price for the transaction is said to be Rs 258.5 per share, a 5% discount to Wednesday’s closing price of Rs 272.8 on NSE. Vedanta’s shares closed at Rs 253.90 on Thursday.

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Twin Star Holdings held a 46.4% stake in Vedanta, data showed. JP Morgan is said to be the sole broker for the transaction deal, according to media reports.

Vedanta had announced a dividend of Rs 18.50 in May this year, after announcing a record dividend of Rs 101.50 per share in FY23. It is to be noted that this announcement came after its UK subsidiary Vedanta Resources has several upcoming debt obligations, including bonds worth $1 billion due in August, and bonds worth another $1 billion due in January.

According to The Economic Times report, Vedanta Resources had total debt repayments of around $4.2 billion in FY24, of which it has already paid $2 billion in the first quarter.

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In Q1 FY24, Vedanta reported a consolidated net profit of Rs 2,640 crore for the quarter ended June, down about 40% from Rs 4,421 crore reported in the same quarter last year. Its revenue from operations fell 13% to Rs 33,342 crore for the first quarter as against Rs 38,251 crore.