Vedanta raises 8 percent on reports of multiple block deals
Published On: Tuesday, November 23, 2021 | By: Team KnowMyStock
Vedanta surged nearly 8 percent to a high of Rs 354 in early deals on the BSE on Tuesday after nearly 7 percent of the total equity of the metal company changed hands via multiple block deals. The stock has rallied 15 percent in the past two trading days in an otherwise weak market. The promoters were looking to increase their stake by up to 4.57 percent amid efforts to restructure the organization and spin-off several businesses. Twin Star Holdings and Vedanta Netherlands Investments B.V will buy around 17 crore shares amounting to a 4.57% stake in a block deal. The offer is priced at Rs 350 per share—a 6.6% premium to the share’s closing price on Monday—valuing the transaction at Rs 5,950 crore. The deal will take place through the accelerated book-building method, with JP Morgan India Pvt. serving as a broker to the promoters.
The company said it is “evaluating all options” including demergers, spin-offs, and strategic partnerships, and is looking at listing its aluminum, iron and steel, and oil and gas verticals as separate entities.The Company also also said its board of directors decided on the move after “considering the scale, nature, and potential opportunities for various business verticals of the company”, and the development is aimed at “unlocking value and simplification of corporate structure”.
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