Vedanta shares in focus today as promoter entity to sell 4.3% stake

Shares of Vedanta Ltd are in focus today as Twin Star Holdings, chairman Anil Agarwal-owned promoter entity, will offload a 4.3 per cent stake in the metal and mining firm for nearly $500 million. The proceeds from stake sale will be used to repay debt of parent company Vedanta Resources. The shares, which will be sold today, are being offered at Rs 258.5 per share, a 5 per cent discount to the Wednesday's closing price of Vedanta Ltd at Rs 272 apiece, according to reports.  

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As per the June shareholding data, the promoters owned 68.11 per cent in Vedanta Ltd. During earnings for the quarter ended June 2023, Vedanta reported a net debt of about Rs 59,200 crore. Net debt-to-EBITDA ratio rose to 1.88 times in the June quarter against 1.28 times in the March quarter.  

In April end, Vedanta Resources Limited, the parent company of Vedanta, said that it has paid all its maturing loans and bonds due in April 2023 and has thus reduced its gross debt by a further $1 billion.

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"Vedanta has now reduced debt by $3 billion since it announced in February 2022 its intention 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," said the mining major.

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The company’s valuation or market capitalisation stood at Rs 1.01 lakh crore on Wednesday. Vedanta stock stock ended 1.68% lower at Rs 272.20 on BSE. A total of 4.25 lakh shares of the firm changed hands amounting to a turnover of Rs 11.62 crore on BSE.    

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In terms of technicals, the relative strength index (RSI) of Vedanta stands at 40.5, signaling neither the stock is overbought nor oversold. The stock has a one-year beta of 1.2, indicating high volatility during the period. Vedanta shares have lost 14% this year and risen 7.82% in a year. 

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.

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