Vedanta shares fall for three straight sessions amid board’s nod to NCD issue

Shares of Vedanta Ltd fell for the third straight session today even as the board of the metals and mining firm cleared raising of Rs 2,500 crore through issue of non-convertible debentures on a private placement basis. Vedanta stock fell to a fresh 52-week low of Rs 224.20 in early deals today, taking the three-day losses of the Anil Agarwal-led firm to 6% on BSE. Market cap of the firm slipped to Rs 83,525 crore.   

The metal stock closed at Rs  236.50 on September 18 and is down by Rs 13.85 since then, taking into account today’s intraday low on BSE.  

In the afternoon session, the stock was trading flat at Rs 224.65 against the previous close of Rs 226.55 on BSE. Market cap of the firm stood at Rs 83,525 crore. A total of 5.17 lakh shares of the firm changed hands amounting to a turnover of Rs 11.64 crore on BSE. Vedanta shares have a one-year beta of 1.2, indicating high volatility during the period.   

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 32, signaling the stock is trading neither in the oversold nor in the overbought territory. Vedanta shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.    

Vedanta shares have lost 28.69% this year and fallen 19.70% in a year.   

Vedanta stock ended 2.26% lower at Rs 226.55 on Thursday. The stock hit a 52-week low of Rs 224.70, sliding 3.06% during the session.   

The company’s parent Vedanta Resources is holding advanced talks with global private credit funds including Bain Capital, Davidson Kempner, Ares SSG Capital and Cerberus Capital, to syndicate a $1 billion short-term loan, said a report. 

Parent Vedanta Resources’ high leverage and funding gap of $3 billion in FY2025 has made investors cautious. Kotak Institutional Equities in a recent noted said they are key areas of concern and overhang.   

Vedanta reported a 40% fall in net profit to Rs 3308 crore in the first quarter. Revenue fell 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23. The company declared an interim dividend of Rs 18.5 per share.      

Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.   

 

Also read: Vedanta shares in news today as board approves raising Rs 2,500 cr via NCDs

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