Vedanta shares tank 9% on block deal report; Rajiv Jain's GQG, Adani group investor, likely buyer

Shares of Vedanta Ltd plunged over 8 per cent in Tuesday's trade as 2.2 per cent equity stake was reportedly sold by Vedanta promoter for about Rs 2,255 crore. Rajiv Jain-led GQG Partners is believed to be the buyer. By 11.33 am, Vedanta counter had seen a tunover of Rs 2,343.72 crore on NSE. On BSE, the counter witnessed Rs 2503.02 crore turnover. A total of 934.15 lakh shares exchanged hands on BSE against a two week average of 4.98 lakh shares.

GQG held stakes in a dozen of Indian listed firm such as Patanjali Foods, Max Healthcare Institute Ltd, ITC Ltd, GMR Airports Infrastructure Ltd, JSW Energy Ltd and IDFC First Bank Ltd. It also owned stakes in a couple of Adani group firms namely Ambuja Cements Ltd, Adani Green Energy Ltd, Adani Power Ltd, Adani Enterprises Ltd and Adani Ports & Special Economic Zone Ltd.

GQG was in fact the first strategic investor in Adani group in the aftermath of scathing Hindenburg Research report that had wiped $150 billion market capitalisation off Adani group firms.

In the case of Vedanta, promoters held 63.71 per cent in the company as of December 31, 2023. In a recent note, PhillipCapial said it has maintained its positive outlook on Vedanta as it feels that commodity prices have legroom to improve from here driven by Chinese stimulus and improved demand in H2Fy24. The demerger of businesses and potential sales of ferrous division will provide further flexibility to promoter Vedanta Resources in terms of debt management, it said.

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