In a recent development, Vedanta experienced a notable turnover in its equity ownership, with approximately 2.2% stake valued at ₹2,255 crore changing hands in block deals, according to exchange disclosures.
The move comes amidst reports of promoters contemplating a significant stake sale to Rajiv Jain’s GQG Partners, reflecting a potential strategic realignment. This news surfaces at a crucial juncture for Vedanta, grappling with substantial outstanding debt amounting to around $6.4 billion, including a sizable payment due by fiscal 2025. As of December 2023, the promoter and affiliated entities collectively held a substantial 63.71% stake in the company.
Meanwhile, foreign portfolio investor GQG Partners has been actively increasing its positions in various Indian firms over the past year, indicating growing investor interest in the domestic market.
Adding to the mix, the Supreme Court has proposed a panel to explore the reopening of Vedanta’s shuttered Sterlite copper smelting plant in Tuticorin. The closure of the plant in 2018, following protests resulting in unfortunate casualties, has been a contentious issue. Vedanta, the parent company of Sterlite, is closely monitoring the developments in this regard.
In its recent financial performance, Vedanta reported a significant 40.81% decline in consolidated net profit to ₹2,464 crore for the third quarter, with revenue remaining relatively stagnant at ₹33,691 crore.
Despite these challenges, Vedanta’s share price exhibited resilience, initially dipping by nearly 2% but later recovering to trade 0.57% lower at ₹278.05 in morning trade on Thursday. This nuanced price action underscores the dynamic nature of market sentiment surrounding the company amidst evolving circumstances.