Vedanta shares concluded the trading session 1.68% lower at Rs 272.20 on the BSE. The company’s market capitalization was recorded at Rs 1.01 lakh crore on Wednesday.
Attention is drawn to shares of Vedanta Ltd today as Twin Star Holdings, a promoter entity owned by Chairman Anil Agarwal, plans to sell a 4.3% stake in the metal and mining company for nearly $500 million. The proceeds from this stake sale will be utilized to repay debt owed by the parent company, Vedanta Resources. The shares, set to be sold today, are being offered at Rs 258.5 per share, representing a 5% discount to Wednesday’s closing price of Vedanta Ltd at Rs 272 per share.
As of the June shareholding data, the promoters held a 68.11% stake in Vedanta Ltd. In the quarter ending June 2023, Vedanta reported a net debt of approximately Rs 59,200 crore. The net debt-to-EBITDA ratio increased to 1.88 times in the June quarter, compared to 1.28 times in the March quarter.
In late April, Vedanta Resources Limited, the parent company of Vedanta, announced that it had successfully repaid all its maturing loans and bonds due in April 2023, reducing its gross debt by an additional $1 billion.
“Vedanta has now reduced debt by $3 billion since it announced its commitment in February 2022 to accelerate deleveraging and reduce its debt by $4 billion within 3 years. Vedanta has thereby achieved 75% of its committed reduction in just 14 months,” stated the mining major.
The market capitalization of the company was Rs 1.01 lakh crore on Wednesday. Vedanta stock ended the trading day 1.68% lower at Rs 272.20 on the BSE, with a total of 4.25 lakh shares changing hands, resulting in a turnover of Rs 11.62 crore on the BSE.
From a technical perspective, Vedanta’s relative strength index (RSI) is at 40.5, indicating that the stock is neither overbought nor oversold. The stock has a one-year beta of 1.2, reflecting high volatility during this period. Vedanta shares have experienced a 14% decline this year while showing a 7.82% increase over the past year.
