Vedanta shares surge 13% to hit a 52-week high

Shares of Vedanta surged over 13 percent to hit their 52-week high of Rs 170.50 in intraday trade on BSE on December 24.

The stock surged after 19.1 crore shares (5.1 percent equity) of the company worth Rs 3,042 crore changed hands via block deals on the BSE and NSE, reported CNBC-TV18.

As per the report, Vedanta Resources would buy close to a 4.9 percent stake in the Indian arm through block deals. The promoter fixed the price at Rs 150-160 apiece.

This will raise promotors’ stake in the company to 55.04 percent from 50.14 percent. As per SEBI norms, promoters holding more than 25 percent but less than 75 percent are allowed to acquire up to 5 percent a year through such creeping acquisition.

JP Morgan India will act as the broker to the promoters’ company Vedanta Holdings Mauritius.

This move comes after the company failed to garner enough shares to delist from the Indian exchanges. During the delisting offer in October, promoters were able to get only 125.47 crore confirmed bids against the required 134.1 crore shares.

In early December this year, Moody’s Investors Service downgraded the corporate family rating of Vedanta Resources Limited to B2 from B1 citing persistent weak liquidity and high refinancing needs.

Moody’s also downgraded the ratings on the senior unsecured bonds issued by Vedanta Resources (VRL) and those issued by Vedanta Resources Finance II Plc (VRF) and guaranteed by VRL to Caa1 from B3.

All ratings remain under review for further downgrade, Moody’s said in a statement.

Shares of Vedanta traded 6.81 percent higher at Rs 160.70 on BSE at 1405 hours.

Yash Gupta Equity Research Associate, Angel Broking, expects the stock to consolidate at these levels.

“Upside will be very limited from current market price as all positive news has been factored in,” he said.

The views and investment tips expressed by investment experts on Money control are their own and not that of the website or its management. Money control advises users to check with certified experts before taking any investment decisions.

Source – https://www.moneycontrol.com/news/business/markets/vedanta-shares-surge-13-to-hit-52-week-high-6267191.html

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