NEW DELHI: Vedanta Resources will sell 2.6 per cent stake in its Mumbai-listed mining group to cut debt and support growth plans, the company said on Wednesday.
Vedanta Resources will sell the stake through its unit Finsider International, which held 2.63 per cent stake in Vedanta Ltd.
"Finsider International Company Limited, a subsidiary of Vedanta Resources Limited (VRL), has yesterday evening accepted a proposal from one of its banks to sell 2.6 per cent stake in Vedanta Limited to a group of reputed institutional investors," a company spokesperson said.
After the repayment of funds from this transaction, Vedanta Resources will have reduced its debt by more than US$650 million since the start of the current financial year in April.
Stock exchange data showed that 18.5 crore shares of Vedanta Ltd changed hands in a block deal.
The number of shares exchanged in the block deal amounts to Rs 7,967.8 crore at a price of Rs 440 per share.
Promoter stake in Vedanta Limited has reduced from 69.68 percent in December 2022 to 61.95 percent in March 2024. In February, promoters had sold some stake in the block deal for Rs 2,615 crore.
"This (existing stake sale) is in line with the group's commitment to significantly reduce its balance sheet at both the India and VRL levels and is in line with broader initiatives to support its strategic growth plans," the spokesperson said. “After the repayments made from the transaction, VRL will have reduced its debt by US$650 million by the beginning of FY 2025.”
Vedanta Resources will sell the stake through its unit Finsider International, which held 2.63 per cent stake in Vedanta Ltd.
"Finsider International Company Limited, a subsidiary of Vedanta Resources Limited (VRL), has yesterday evening accepted a proposal from one of its banks to sell 2.6 per cent stake in Vedanta Limited to a group of reputed institutional investors," a company spokesperson said.
After the repayment of funds from this transaction, Vedanta Resources will have reduced its debt by more than US$650 million since the start of the current financial year in April.
Stock exchange data showed that 18.5 crore shares of Vedanta Ltd changed hands in a block deal.
The number of shares exchanged in the block deal amounts to Rs 7,967.8 crore at a price of Rs 440 per share.
Promoter stake in Vedanta Limited has reduced from 69.68 percent in December 2022 to 61.95 percent in March 2024. In February, promoters had sold some stake in the block deal for Rs 2,615 crore.
"This (existing stake sale) is in line with the group's commitment to significantly reduce its balance sheet at both the India and VRL levels and is in line with broader initiatives to support its strategic growth plans," the spokesperson said. “After the repayments made from the transaction, VRL will have reduced its debt by US$650 million by the beginning of FY 2025.”
