Vedanta Update: Stock soars as promoters increase stake!

Last updated: 24 Dec, 2020 | 07:55 am

Vedanta Update: Stock soars as promoters increase stake!

Promoters buy additional 5% stake

  • On 24 December, there were reports that Vedanta Ltd parent company Vedanta Resources, will buy up to 5% of the company’s total stake on Thursday through block deals.
  • The Promoters fixed the price range between 150 and 160 per share for the offer. This will increase the promoters’ stake from 50.14% to 55.04%.
  • As per trade data from exchanges over 200 million, or 6% of the total equity of the company, changed hands via block deals in early morning trades on the BSE and NSE. 

Outlook going forward

  • In October this year, the promoters had tried to delist the company at a floor price of 84. However, the offer failed to garner interest as many analysts and institutions had said that the shares are undervalued at the set price and are much below the book value of the company. 
  • After this failed attempt, the promoters have turned to the open markets to increase their stake. This act of purchasing company shares by its promoters over a number of small transactions, so as to increase their stake in the company by an economically significant amount is known as creeping acquisition. 
  • As per SEBI norms, promoters are allowed to acquire up to 5% stake in their company in a financial year through creeping acquisition.
  • Further increasing the stake in the future may make the delisting task easier for the promoters.

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth, IND.app, IND.money, INDsave.com) makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, IND.app are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id: principalofficer@indwealth.in, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]