November 27, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Vedanta surges 7% on reports of multiple block deals as promoters look to raise stake

Large deals took place on the bourses today with nearly 7 percent of the total equity changing hands in multiple transactions, according to news reports.

Vedanta surged more than 7% in trade on Tuesday after a report by Business Standard said the promoters were looking to increase their stake by up to 4.57 percent amid efforts to restructure the organisation and spin off several businesses.

The stock hit an intraday high of Rs 354 on Tuesday after nearly 7 percent of the total equity reportedly changed hands via multiple block deals. It has rallied over 15% in the past two sessions.

Moneycontrol could not independently verify the report.

According to the report, 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.

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.

The report comes a few days after the company said it was evaluating a spin-off of its aluminium, iron and steel, and oil and gas businesses into separate listed entities in order to unlock value.

Moody’s has reportedly said that the spin-off would not affect the company’s credit quality.

At 10:27 am, the shares of Vedanta were trading 5% higher at Rs 344.75 on the BSE. The entire Nifty Metal pack was also in the green on Tuesday, with the Nifty Metal up 2.3% at 5547.40 points.

Moneycontrol News

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