Vedanta promoters to buy 4.6% stake in block deal
Anil Agarwal led Vedanta witnessed near thirty-fold surge trading volume on the bourses following the promoter group decision to raise stake in the world’s largest miner through cropping acquisitions.
On Tuesday, the counter notched up volume of 431.63 lakh shares by 10:50 IST on BSE, a 28.59 fold spurt over two-week average daily volume of 15.10 lakh shares.
Following the increased investor interest the stock rose 4.11% to Rs.342.05. Volumes stood at 30.28 lakh shares in the last session.
Vedanta promoters are planning to buy stake in the mining conglomerate as it exploring options to simplify its corporate structure.
Twin Star Holdings and Vedanta Netherlands Investments B.V will buy around 17 crore shares amounting to 4.57% stake in a block deal, according to filings for qualified institutional buyers. The offer is priced at Rs 350 per share—a 6.6% premium to the share’s closing price on Monday—valuing the transaction at Rs 5,950 crore.
The deal will take place through the accelerated book building method, with JP Morgan India Pvt. serving as broker to the promoters.
The metals to mining group intended to house its aluminium, iron and steel, oil and gas units in standalone listed entities. The company’s board and advisers will complete their evaluation and suggest steps soon.
The corporate restructuring efforts came a year after Vedanta’s delisting offer in October 2020 failed when it received a large number of unconfirmed bids and technical glitches marred the tender process. The delisting offer was made by parent Vedanta Resources Ltd. along with two other promoter entities.
In January this year, Anil Agarwal-controlled Vedanta Resources offered to buy up to 10% stake in Vedanta at Rs 160 per share. Two months later, it raised the offer price to Rs 235 per share and the offer size to 17.5% stake after shares of Vedanta rallied sharply following the sharp run up in global commodity prices.
In April, Vedanta Resources’ bid to buy back a portion of shares in Vedanta received tepid response from investors. The voluntary open offer to acquire 17.5% stake in Vedanta was subscribed 57.5% by the final day of bidding.
According to the Vedanta’s shareholding pattern for September available on the exchanges, Vedanta promoters hold 65.2% stake in the company, followed by 34.5% stake held by the public.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.