Promoter Twin Star sells 4.1% of Vedanta for Rs 3,983 crore

4 Aug 2023 , 11:56 AM

On Thursday, Twin Star Holdings, the largest shareholder among Vedanta’s promoters, sold a portion of its stock through block transactions.

Twin Star sold 15.4 crore shares, or 4.14% of the firm, based on the bulk deals data that is readily available from the exchanges. At a weighted average price of Rs 258, the deal was completed at a 5% reduction from Wednesday’s closing price.

Further, 8.4 crore shares, or 2.2% of the company, have been purchased by investment firm Copthall Mauritius. Societe Generale, a different foreign investor, also purchased 2.94 crore shares in the deal.

As of the end of June, Promoters owned 68% of Vedanta, while Twinstar Holdings held a 46.4% share.

Following several sizable deals on the bourses, shares of the big mining company plunged by about 9% and reached a level close to their 52-week low.

Following several sizable deals on the bourses, shares of the big mining company plunged by about 9% and reached a level close to their 52-week low.

On the NSE, the stock decreased 6.71% to settle at Rs 253.9. The shares have underperformed the benchmark index for the year as a whole, dropping close to 20%.

Vedanta’s consolidated net profit for the June quarter fell by 40% to Rs 2,640 crore from Rs 4,421 crore reported for the same quarter in 2022.

Operations revenue decreased 13% to Rs 33,342 crore for the first quarter from Rs 38,251 crore. The sharp decline in production commodity prices, which has been partially offset by favourable exchange rate movement, is the main cause of the revenue decline.

Due to lower output commodity prices and lower sales, the business recorded an EBITDA of Rs 6,975 crore for the April–June period, a 35% decrease from Rs 10,741 crore in the same time last year. EBITDA margin was 24% during the quarter.

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