Vedanta Resources denies reports of stake sale in Vedanta Limited, Vedanta Group biggest wealth creator in FY25 so far
Vedanta Resources Ltd, the parent company of the Indian-listed entity Vedanta Ltd, has categorically denied any media reports of selling any stake in its subsidiary. “Vedanta Resources strongly denies any plans to sell a stake in Vedanta Limited,” a spokesperson for the company told CNBC-TV18.
Last week media reports had claimed that Vedanta promoters were considering selling up to a 2.5 percent stake for over Rs 4,000 crore in Vedanta Ltd.
Earlier, Vedanta Group Chairman Anil Agarwal in an interview with CNBC-TV18 said that he intends to keep the present level of stake holding intact. “We have 62-61 point something percent of holding of the company and we are comfortable. Any investment banker comes and gives me some idea, we will work on it. (But) at this point of time, there is nothing on the cards to take our holding down below 61.5%,” Agarwal had said.
As of Q4FY24, Vedanta’s promoters held a 61.95 percent stake in the company. Since December 2022, the promoter stake in Vedanta has reduced from just under 70 percent to slightly over 60 percent.
Biggest wealth creator so far in FY25
Vedanta Group comprising, Vedanta Ltd and Hindustan Zinc Ltd, have generated the maximum wealth for investors on the Dalal Street in the current fiscal so far, with the combined market valuation of both firms surging by Rs 2.2 lakh crore.
The market capitalisation of the Vedanta Group surged by over Rs 2.2 lakh crore between March 28 and June 20, 2024, according to stock exchange data. This is higher than the market cap growth witnessed by leading Indian businesses like Reliance Industries, Mahindra Group, and the Tata Group during the same period.
Share prices of Vedanta and Hindustan Zinc have doubled from their 52-week lows, backed by multiple positives, including the proposed demerger, the management’s consistent focus on deleveraging, and significant improvement in earnings, as per stock exchange data.
In comparison, Adani and Mahindra groups saw their market cap rise by Rs 1.4 lakh crore each.
While Tata Group’s market cap rose by over Rs 60,600 crore, heavyweight RIL’s market valuation declined by more than Rs 20,656.14 crore during this period.
The rising conviction of investors in Vedanta Group was evident in the increasing shareholding of institutional buyers, as foreign institutional investors’ holding in Vedanta rose to 8.77 percent at the end of March quarter from 7.74 percent a quarter ago.
(With inputs from PTI)
