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May 30, 2023

Metal stock falls up to 9% after Promoter Entity likely to sell stake in the company

Shares of this large-cap metal stock dipped up to 9 percent on stake sale buzz. In the last one-month period, the company’s stock has fallen close to 8.50 percent from Rs 277.55 to the current price

Shares of this large-cap metal stock dipped up to 9 percent on stake sale buzz. In the last one-month period, the company’s stock has fallen close to 8.50 percent from Rs 277.55 to the current price level.

With a market capitalization of Rs 94,500 crores, the stocks of Vedanta (NS:VDAN) Limited closed at Rs 254.05 on Thursday. The scrip witnessed an intra-day low of Rs 247.60 which indicate a fall of around 9 percent as compared to the previous closing price of Rs 272.15 apiece.

Such sharp movements in the stock prices were observed amid a block deal buzz around the company.

According to various reports, Twin Star Holdings Limited, billionaire Anil Agarwal’s entity, likely sold up to 16 crore shares at Rs 258.50 per share indicating a discount of around 5 percent compared to Wednesday’s closing price. The entity is said to offload around 4.30 percent stake in the metal company.

According to the shareholding data available for the quarter ended March 2023, Twin Star Holdings Limited holds a 46.40 percent stake in the company. The stake sale is pertaining to Agarwal’s plan to reduce the company’s debt and transform the group into a pure-play non-ferrous and green energy business.

In recent quarters, the consolidated financials reported opposing movements in operating revenues and net profits with the former reducing from Rs 37,930 crores during Q4FY22-23 to Rs 33,733 crores during Q1FY23-24, and, the latter, moving up from Rs 3,132 crores to Rs 3,308 crores.

Vedanta Limited is engaged in the business of extracting and processing minerals and oil & gas. The company performs its operations within and outside India. Overseas operations include countries like Australia, South Africa, Ireland, etc. The company has five broad segments such as aluminium, most revenue generating, copper, and many more.

Written by Amit Madnani

The post Metal stock falls up to 9% after Promoter Entity likely to sell stake in the company appeared first on Trade Brains.

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