Multibagger stock rises nearly 2% after promoters releases pledged shares
1 min read . Updated: 15 Mar 2023, 12:10 PM IST
Premium- The stock of Vedanta Resources has delivered multibagger returns to investors in three years
Shares of billionaire Anil Agarwal's Vedanta Resources Ltd on Wednesday gained nearly 2 per cent after the mining giant said it has repaid $100 million to Standard Chartered Bank via release of encumbrance on 10 March, 2023.
Vedanta shares gained 1.70 per cent to ₹284.15 against the previous close of ₹280.90 on NSE. The stock has delivered multibagger returns of 238 per cent in three years but lost 9.27 per cent in the last one month.
The stock hit a 52-week high of ₹440.75 on 11, April 2022 and a 52-week low of ₹206.1 on 1 July, 2022. The market cap of the firm rose to ₹1.05 lakh crore on BSE.
"The earlier disclosure was made pursuant to facility agreement dated 08 September 2022 entered into between Twin Star Holding Limited, Vedanta Resources Limited and Welter Trading Limited, Standard Chartered Bank (Singapore) Limited for the purposes of availing a facility of an aggregate amount of US$ 100,000,000. However, the said facility has been repaid and the encumbrance has been released," the firm said in a regulatory filing.
Vedanta had earlier said that it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns around its financial position.
The mining giant said it has pre-paid all of its debt that was due for repayment till March this year, deleveraging by $2 billion in the past 11 months. Further, it is confident of meeting its liquidity requirements for the quarter ending June 2023.
Vedanta Ltd, it said, continues to deliver healthy cash flows and does not have any pledge except 6.8 per cent of HZL shares.
Vedanta Resources repays $150-mn loan
On Tuesday, Vedanta Resources said that its promoters have repaid another $150 million of loan and released the pledged shares of the company.
Deutsche Bank AG and Barclays Bank PLC had entered into an agreement last June with Twin Star Holdings, Vedanta Resources and Welter Trading to lend $150 million. The borrower has repaid and the encumbrance has been released, said the company in a statement earlier on Tuesday.
Recently, rating agency Moody’s Investor Service had downgraded the corporate family rating of Vedanta Resources to Caa1 from B3 earlier over increasing refinancing risks in debt maturities. The outlook for the rating remains negative, the rating agency had said.