Twin Star Holding to offload 4.3% stake in Vedanta; stock tumbles ~8%

3 Aug 2023 , 11:04 AM

Vedanta Limited’s counter fell as much as 8% in today’s trade after one of the promoters pared 4.3% stake via block deals.

At around 10.32 AM, Vedanta was trading 7.40% lower at Rs 252, against the previous close of Rs 272.15 on NSE. The counter slipped to an intraday low of Rs 247.60.

Some of the reports suggested that Twin Star Holdings, one of the promoters of Vedanta Limited, plans to sell a 4.3% interest in Vedanta Ltd. through a block deal on Thursday.

The shares are sold at a floor price of Rs 258.50 per share, representing a more than 5% discount to the National Stock Exchange’s closing price of Rs 272.80 on Wednesday.

The sale of approximately 16 million shares is estimated to generate approximately $501 million, or Rs 4,130 crore, for the promoter. According to data, Twin Star Holdings owned a 46.4% stake in Vedanta.

Following a record dividend payout of Rs 101.50 per share in FY23, Vedanta announced Rs 18.00 dividend in May of this year. 

These large dividend payments come at a time when Vedanta’s UK-listed parent, Vedanta Resources, has many imminent debt commitments, including $1 billion in notes due in August and another $1 billion in bonds due in January.

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