Vedanta's U.K. Parent Cuts Stake Again To Ease Debt Woes

Vedanta Resources has sold a 2.63% stake in its Indian arm Vedanta to raise ₹4,184 crore.

What Happened: Indian mining tycoon Anil Agarwal's Vedanta Resources sold 9.79 crore shares of Vedanta On Wednesday at an average price of ₹427.21 per share. The deal was conducted on the Bombay Stock Exchange through Finsider International Company, owned by Vedanta Resources. 

Finsider held a 2.63% stake in the firm at the end of the March-ended quarter, according to Trendlyne data. That means Finsider has completely offloaded its Vedanta holdings with the latest trade.

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The company has decided to sell its holdings in Vedanta to a group of institutional investors, according to media reports that cited a company statement. However, the firm has not disclosed the details of the investors. 

The move marks a U-turn from last week when the firm reportedly denied any plans to cut its stake in Vedanta.

The development comes as Vedanta Resources reels from a host of rating downgrades. In January 2024, Moody's downgraded the credit rating of the London-based mining firm to Caa3 from Caa2 over potential default risks. A Caa3 rating represents poor-quality debt and very high credit risk.

In February, the UK-based parent firm sold a stake worth around ₹2,615 crore in Vedanta Ltd.

The latest stake sale aims to help the company reduce its debt by $650 million (₹5,426 crore) so far in fiscal year 2025, according to a company statement cited by Reuters.

Price Action: Vedanta's share price was down 1.19% at ₹436.85 during mid-day trading on Thursday.

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Posted In: EquitiesNewsAsset SalesMarketsAnil AgarwalVedantaVedanta Resources