Key Vedanta Promoter Exits By Divesting Stake Worth Rs 4,184 Crore

A key promoter of Vedanta Ltd. has exited the company by divesting its shares in bulk deals.

This is in line with a proposal from one of Vedanta Resources Ltd.'s banks to sell a 2.6% stake in Vedanta to a group of investors.

Finsider International Co. offloaded a 2.63% stake worth Rs 4,184 crore, according to BSE bulk deal data.

The promoter company had sold 9.79 crore shares at Rs 427.21 apiece, according to the data. As of March, it had a 2.63% stake in the company.

The buyers could not be identified.

The company expressed commitment to substantially reducing debt on its financial statements at both the India and Vedanta Resources levels, in line with its overall aim to bolster its strategic expansion strategies.

"With $6 billion in debt as of March 2024, Vedanta Resources has been dealing with a number of rating downgrades since last year, due to concerns raised by analysts about liquidity and default risk," NDTV Profit reported.

In the past two years, the firm has decreased its debt burden by $3.5 billion, with a target to achieve approximately $6.2 billion by the conclusion of fiscal 2024.

The objective is to continue cutting debt by $3 billion in the upcoming three years through brand fees, dividends, and internal earnings, all while avoiding any rise in Vedanta's debt.

In February, Finsider divested 6.55 crore shares at Rs 265.14 apiece, according to data from the BSE.

Shares of Vedanta closed 2.65% lower at Rs 454.05 apiece, as compared to an uptick of 0.62% in the NSE Nifty 50.