The promoters of Vedanta have reportedly sold 17.1 crore shares of the company, with the transaction value estimated to be between Rs 7,000 and 8,000 crore. While the official buyers and sellers of the transaction remain undisclosed, the sale caused Vedanta's shares to drop by 6.5% to a low of Rs 424.50 on the BSE.
A spokesperson for Vedanta Resources revealed that Finsider International Company Ltd, a subsidiary of Vedanta Resources Limited (VRL), has accepted a proposal from one of its banks to sell a 2.6% stake in Vedanta Limited to a group of reputable institutional investors. This move aligns with the group's commitment to significantly reduce its debt at both the Indian and VRL levels, supporting its strategic growth plans. The spokesperson noted that post-repayments from this transaction, VRL would have reduced its debt by over $650 million since the beginning of FY2025.
Earlier reports indicated that the promoters intended to sell approximately 2.5% of their stake, equating to 9 crore shares, to raise Rs 4,000 crore. This sale was reportedly conducted at a discount of around 8-10% to help Vedanta Resources repay debt due in the coming months. ET Now reported that Finsider International executed the block deal today, with more details to follow.
Anil Agarwal, the owner of Vedanta, has been focused on reducing the group's debt burden. Vedanta Resources, listed in London, decreased its net debt from $9.7 billion in FY22 to $6 billion in FY24. The company aims to further reduce this to $3 billion over the next three years, with long-term debt maturities of $900 million due in both FY25 and FY26.
As of March 31, UK-based Vedanta Resources held a 61.95% stake in India-listed Vedanta Ltd through six subsidiaries. Shares of Vedanta Ltd have surged 76% this year, reaching Rs 451 on Tuesday, compared to a 7% gain in the Sensex year-to-date. In February, Finsider International sold over 65.5 million Vedanta Ltd shares for Rs 1,700 crore, at a price of Rs 265.14 per share.
Vedanta Ltd has proposed a vertical split of its Indian businesses, planning to list five entities on the domestic stock exchanges by the end of the year. This demerger will create independent pure-play companies in aluminium, power, base metals, oil and gas, and steel and ferrous derivatives, while zinc and other existing businesses will remain under Vedanta Ltd.