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.
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.
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.
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.
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’
