Vedanta shares: MSCI to adjust free float today, inflows likely

Nuvama Alternative & Quantitative Research on Monday said Vedanta would see MSCI free float adjustment today, with inflows likely on the counter in the last 30 minutes of trade. According to Nuvama Alternative's calculations, the weight increase will result in an inflow of $45 million, which is approximately 8 million shares, equivalent to a 0.5-day impact.

Vedanta shares were trading 0.97 per cent higher at Rs 449 on BSE. The stock is down 3 per cent in the past one month but is up 75 per cent in 2024 so far.

Recently, Vedanta Resources, the parent company of Vedanta, saw an upgrade in rating by S&P Global Ratings on account of the company’s improving capital  structure and liquidity. S&P assigned a stable outlook to VRL and suggested a rating of 'B-' from 'CCC+'. 
The rating upgrade reflects VRL’s strong credit profile with a long-standing record of delivering  superior performance and healthy free cash flows, it said.

"VRL has been significantly deleveraging its balance  sheet leading to a robust capital structure that supports sustainable growth over the long-term.  S&P revised its estimates on VRL’s earnings, estimating the Ebitda for fiscals 2025 and 2026 to be in the range of US$5.5 billion - US$6.0 billion annually," it noted.

 The ratings agency expects VRL's debt to fall by another $1 billion to about $4.5 billion over the next 12 months while it sees interest expenses falling to $550-$600 million by the end of fiscal 2025.