Vedanta Promoter Finsider Offloads 1.76% Stake for ₹1,737 Crore

16 Feb 2024 , 09:42 AM

According to BSE’s bulk trades data, Finsider International Company sold 6.55 Crore shares, or 1.76%, of the mining giant Vedanta Limited. This was one of several buyers and sellers involved in an 8.2 Crore share deal.

The buyers’ names were kept confidential by the exchange.

At an average price of ₹265.14 per share, the deal was completed. That indicates that Finsider International Company sold the share for ₹1,737 Crore. The company is a member of the promoter group, which as of December’s end held 4.40 % of the company’s equity.

According to media reports, Rajiv Jain’s investment firm GQG Partners was interested in purchasing a $1 billion share in the company from the promoters.

Vedanta is currently in the midst of a $6.4 billion debt load, of which $4.5 billion is due by the company’s fiscal year 2025. This is the reason for the stake sale. As of December 2023, the promoter and related entities owned 63.71 % of Vedanta.

GQG Partners, a foreign portfolio investor, has raised its ownership of other Indian firms, such as Adani Ports and GMR Airport Infrastructure, during the past year.

On February 14, the Supreme Court announced that it would form a committee to investigate the viability of reopening Vedanta’s closed Sterlite copper smelting facility in Tuticorin. Sterlite’s parent firm is called Vedanta.

After protests against the plant led in 13 deaths from police shootings, the plant was shut down in 2018. 

The Anil Agarwal-led company reported unchanged sales of ₹33,691 for the third quarter, but a 40.81 % fall in consolidated net profit to ₹2,464 Crore.

The director of DR Choksey, Deven Choksey, stated that as Vedanta is undergoing a restructuring program, there would likely be a balance sheet difficulty for a while, which will likely result in lower stock performance.

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