Vedanta Stock Ends At The Highest In 11 Months After Large Trades

According to Bloomberg data, 4.5% of the company’s total equity exchanged hands in 17 large trades.

Hormaz Fatakia

24 Dec 2020, 04:04 PM IST

The logo of Vedanta Resources Plc sits on a newly molded aluminum ingot. (Photographer: Oliver Bunic/Bloomberg)

Vedanta Ltd.’s stock touched its highest in nearly a year after 16.6 crore shares of the Anil Agarwal-led mining conglomerate exchange hands in multiple large trades.

According to Bloomberg data, 4.5% of the company’s total equity exchanged hands in 17 large trades.

Among the three notably large trades, the first saw 3.7 crore shares exchange hands at Rs 159.7 apiece. The deal was valued at Rs 588 crore.
The second trade saw 6.5 crore shares change hands at Rs 159.15 apiece. The transaction was valued at Rs 1,042 crore.
In the third, 3.25 crore shares worth Rs 521 crore were traded. The transaction took place at Rs 160 apiece.

Several media reports, including that from Business Standard, Economic Times and CNBC TV 18, on Wednesday suggested that Vedanta Resources will buy close to 4.9% stake in the Indian unit through block deals. The promoter fixed the price at Rs 150-160 apiece.

“Promoters buying stake is definitely viewed as a positive by the market,” Siddhartha Khemka, vice president and head of research at Motilal Oswal, told BloombergQuint over the phone. “This financial year they can raise stake by 5% and another 5% next year.” Khemka anticipates another such offer coming up by April or May next year. “This is an effort to strengthen the promoter holding in the company.”

Vedanta Resources’ effort to delist the Indian unit failed in October. The shares had then dropped to as low as Rs 94 apiece. “Given that they can raise their stake by another 5% by April, which is not very far from now, can keep the stock prices firm going ahead,” Khemka said.

Shares of Vedanta ended 8.2% higher on Thursday at Rs 162.85 apiece—the highest since January 15, 2020. The stock rose for the third straight day and has gained close to 25% during this period.

Of the 17 analysts tracking Vedanta, 11 have a ‘buy’ rating, five suggest a ‘hold’ and one recommends a ‘sell’. The stock is trading 15.6% higher than its 12-month Bloomberg consensus price target.