Vedanta ₹7,485 Cr Block Deal: Promoter Sells 4.6% Equity Stake

On June 26, approximately 4.6% equity stake in Vedanta Ltd was sold for ₹7,485 crore through block deals, according to a report by CNBC TV18 citing unidentified sources. The transaction involved the exchange of 17.43 crore shares, with a promoter entity likely being the seller.

The stake sale in Vedanta Ltd occurred just days after group Chairman Anil Agarwal stated that the promoters would not dilute any more equity in the company. Additionally, parent firm Vedanta Resources had previously denied a report suggesting it would sell its shareholding. Vedanta stock price fell in the morning trade, and was at ₹439.5, down 3.2% from the previous close.

Agarwal has been working to reduce the group's debt burden. London-listed Vedanta Resources decreased its net debt from $9.7 billion in FY22 to $6 billion in FY24. The company aims to further reduce this to $3 billion over the next three years. Vedanta Resources faces long-term debt maturities of $900 million in FY25 and another $900 million in FY26.

As of March 31, UK-based Vedanta Resources held a 61.95% stake in India-listed Vedanta Ltd through six subsidiaries. Shares of Vedanta Ltd have surged 76% so far this year, reaching ₹451 on Tuesday, compared to a 7% gain in the Sensex year-to-date. The group's Indian assets are held through Vedanta Ltd. In February, Finsider International, a subsidiary of Vedanta Resources, sold over 65.5 million Vedanta Ltd shares for ₹1,700 crore at ₹265.14 per share. Since then, Vedanta Ltd shares have rallied 77%.

As of March 31, the consolidated net debt at the Vedanta Group—which includes Vedanta Resources, Vedanta Ltd, and Hindustan Zinc—was $12.35 billion. Of this total, 49% was rupee-denominated, with the remaining balance in foreign currency, as the company disclosed to its bondholders in a recent investor presentation.

Between FY22 and FY24, Vedanta Ltd distributed over ₹65,000 crore in dividends. Vedanta Resources received nearly ₹44,000 crore from these dividends, which aided the parent company in reducing its net debt from $9.7 billion to $6 billion during this period.

Vedanta Ltd has proposed a vertical split of its Indian businesses and plans to list five entities on the domestic stock exchanges by the end of this year. The demerger will create independent pure-play companies focused on aluminium, power, base metals, oil and gas, and steel and ferrous derivatives, while zinc and other existing businesses will remain under Vedanta Ltd.

Earlier this month, the Vedanta Group revealed a strategic roadmap aimed at achieving an operating profit of $10 billion. This plan includes the timely execution of over 50 projects across various business verticals. The roadmap was discussed during site visits attended by more than 45 investors, fund managers, and analysts from leading brokerages and fund houses, according to two individuals who were present.