Why Are Vedanta Shares Tanking Today?
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Vedanta Ltd’s share price sank at open on Tuesday after electronics manufacturer Foxconn pulled the plug on a $19.5 billion (₹1.6 lakh crore) joint venture to manufacture semiconductors in India.

What Happened? "Foxconn has determined it will not move forward on the joint venture with Vedanta," the Taiwan-based company said in a statement on Monday.

The company said it had worked on realising its semiconductor ambitions with Vedanta for over a year but the two firms had mutually decided to dump the joint venture. Foxconn said it will remove its name from the entity, which is now fully owned by Vedanta.

See Also: Why This Tata Stock Is Surging Today

It was previously reported that Foxconn was seeking partnerships with other Indian businesses to fulfil its semiconductor manufacturing plans in the country, moving away from joint-venture partner Vedanta Group.

The reports suggested that differences had appeared with Vedanta Group over the changes to be made in reapplying for incentives under the government's $10 billion (₹82,000 crore) Indian Semiconductor Mission after their first application was reportedly rejected for not meeting the government's criteria.

Vedanta has been on a borrowing spree recently as it looks to service a large amount of debt it has accumulated since the sale of its zinc-mining unit to its subsidiary, Hindustan Zinc, fell through.

Price Action: Vedanta’s share price dropped 1.47% to trade at ₹278.10 in early morning trade on Tuesday.

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