Shares of Vedanta hit a fresh 52-week high of Rs 230, up 2 per cent on the BSE, in the intra-day trade on Wednesday after the promoter, Vedanta Resources Plc, raised the open offer price for buying shares in flagship Indian firm to Rs 235 per share from Rs 160 per share earlier. At 10:38 am, the stock was trading flat at Rs 226.15, as compared to a 0.12 per cent decline in the S&P BSE Sensex.
Vedanta Resources has also has upward revised the number of shares it wants to buy to 651 million shares (17.51 per cent of voting share capital of Vedanta) as compared to 371.7 million shares earlier (10 per cent of voting share capital of Vedanta earlier). Earlier in January 2021, Vedanta resources had offered to buy up to 10 per cent of voting share capital of Vedanta at Rs 160 per share.
"The revised offer is around 4 per cent higher than Tuesday’s closing price of Vedanta. In its revised offer, Vedanta resources have raised the offer price as well number of shares it wants to buy. The total consideration for the offer is Rs 15,300 crore and if the offer is successful, Vedanta Resources' shareholding in Vedanta Ltd will increase from the current 55.1 per cent to 72.6 per cent post the transaction," ICICI Securities said in a note.
In the past three months, the stock of Vedanta has outperformed the market by surging 55 per cent, as against a 7 per cent rise in the S&P BSE Sensex. Vedanta’s earnings, the brokerage says, remain sensitive to movement in commodity prices. The improvement in major commodity prices over the last couple of quarters thus augurs well for the company.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU