File image of Vedanta’s Anil Agarwal (Image: PTI)
Promoters of Vedanta, Vedanta Netherlands Investments BV and Twin Star Holdings are looking to purchase up to 170 million equity shares of Vedanta at Rs 350 each, for total valuation of Rs 5,950 crore, the Business Standard reported.
On November 22, shares of Vedanta closed at Rs 328.55 on the BSE.
As of September 30, the promoter group of companies had an outstanding purchase offer size of up to 4.57 percent of total shares, the report added. Purchase offer is an accelerated book build purchase of equity shares.
Moneycontrol could not independently verify the report.
JP Morgan is acting as broker to Vedanta Netherlands Investments BV and Twin Star Holdings.
This comes after the Anil Agarwal-led mining company on November 17 announced that it is considering plans for a complete overhaul of its corporate structure.
The company said it is “evaluating all options” including demergers, spin-offs and strategic partnerships, and is looking at listing its aluminium, iron and steel, and oil and gas verticals as separate entities.
In a regulatory filing, the mining major also said its board of directors decided on the move after “considering the scale, nature, and potential opportunities for various business verticals of the company”, and the development is aimed at “unlocking value and simplification of corporate structure”.
“Subject to a detailed evaluation, it is the intention that the aluminium, iron and steel, and oil and gas businesses would be housed in standalone listed entities,” it added.
To ensure the plan follows through, Vedanta’s board of directors has constituted a committee of directors to evaluate and recommend such options and alternatives to the board.
After the news broke, Vedanta’s shares fell around 9 percent on the NSE on November 18. Analysts pointed out the stock rose 11 percent in November prior to this, which was perhaps in anticipation of the development. Even so, some concerns remain.