After its promoter sells a 4.3% stake in a block deal, Vedanta shares decline by 9%

On Thursday during the BSE trading session, shares of Anil Agarwal-owned Vedanta fell 9% to Rs 248 a share on rumors that Twin Star Holdings, one of the company’s promoters, had sold about 4.3% of its stock through block deals.

According to reports, the transaction’s floor price would be Rs 258.5 per share, or 5% less than Wednesday’s NSE closing price of Rs 272.8. On Thursday, Vedanta’s shares were closed at Rs 253.90.

According to the report, Twin Star Holdings has a 46.4% interest in Vedanta. According to media sources, JP Morgan is the only broker for the transaction agreement.
After paying a record dividend of Rs 101.50 per share in FY23, Vedanta paid a dividend of Rs 18.50 in May of this year. It should be noted that this declaration was made after Vedanta Resources’ UK subsidiary received multiple imminent financial obligations, including $1 billion in bonds due in August and another $1 billion in bonds due in January.

Vedanta Resources paid $2 billion of its estimated $4.2 billion in debt repayments in the first quarter of FY24, according to a story in The Economic Times.

Vedanta recorded a consolidated net profit for the first quarter of FY24 of Rs 2,640 crore for the quarter that ended in June, a decrease of roughly 40% from the Rs 4,421 crore reported for the same period in 2017. The company’s operating revenue decreased 13% to Rs 33,342 crore in the first quarter from Rs 38,251 crore.