Vedanta shares plunge 9% after promoters sell 4.3% stake via block deal
Vedanta share price NSE: Shares of mining major Vedanta (VEDL) came under heavy selling pressure in the early trade on Thursday after billionaire Anil Agarwal-led mining major's promoters sold a 4.3 per cent stake through a block deal, as per reports.
Vedanta share price NSE: Shares of mining major Vedanta (VEDL) came under heavy selling pressure on Thursday after billionaire Anil Agarwal-led mining major's promoters sold a 4.3 per cent stake through a block deal, as per reports. Promoter Twin Star Holdings sold 16 crore shares and reduced its stake in the company from 46.4 per cent earlier to 42.1 per cent. The deal was at a 5 per cent discount from the current market price.
The stock opened at Rs 260.9 and plunged as much as 9 per cent to touch the day's low of Rs 247.6 from the previous close of Rs 272.15 on the NSE. It eventually ended 6.71 per cent lower at Rs 253.9 apiece on the NSE.
Meanwhile, Vedanta's chairman, Anil Agarwal, has exhorted setting up a policy mechanism that promotes the participation of young entrepreneurs in the mining sector, particularly metals that are key to emerging technologies. The development of mines at scale will also help India cut down on its dependence on imports, he said.
Coca Cola India forays into Alcohol segment alcoholic beverage stocks Radico Khaitan, UBL, Sula Vineyards, Som Distilleries shares rise Tilaknagar Industries stock declines
"The technologies of the future, such as EVs, batteries, solar power, wind energy, etc., are highly mineral-intensive. They need large quantities of lithium, cobalt, rare earth, copper, and other minerals. India is 100% import-dependent for some of these minerals and more than 50% dependent on others. This is a big risk," Agarwal said in a recent tweet. "Despite our superior geology, countries like China and Saudi Arabia are taking the lead through very liberal policies to attract investment and become major players in these new-age minerals," he added.
Stressing the need to reduce the nation's dependence on mineral imports, he further said, "In India, the key is to enable young entrepreneurs to undertake exploration and allow them to sell their discoveries to large mining companies, who will develop these discoveries into production." Pointing out that liberalising and supporting exploration could be a game changer for startups, he said that this will help India be among the top three economies in the world. "Time is of essence," he concluded.
The technologies of the future, in EVs, batteries, solar power, wind energy etc, are highly mineral intensive. They need large quantities of lithium, cobalt, rare earths, copper and other minerals. India is 100% import dependent for some of these minerals and more than 50%… pic.twitter.com/KWDQ7USz1V
— Anil Agarwal (@AnilAgarwal_Ved) August 1, 2023
Vedanta, a subsidiary of Vedanta Resources Limited, is one of the leading natural resources companies across India, South Africa, Namibia, Liberia, the UAE, Korea, Taiwan, and Japan, with operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass substrates. It is also foraying into semiconductors and display glass.
Vedanta share price history
Vedanta's stock has risen nearly two per cent in the last 12 months (from August 3, 2022). In comparison, the headline index Nifty 50 has rallied over 12 per cent.
(with PTI inputs)