Tag: vedanta

In signs of protests against the 9-month-old windfall tax, mining mogul Anil Agarwal's Vedanta Ltd has withheld about USD 91 million from the share of profit due to the government from its oil and gas fields, to make up for the additional tax outgo, according to sources and correspondence on the issue. India first imposed windfall profit tax on July 1, 2022, joining a growing number of nations that tax super normal profits of energy companies. But the levy of Special Additional Excise Duty (SAED) on locally produced crude oil was seen by producers as a violation of the contract which provides fiscal stability. The SAED initially was Rs 23,250 per tonne ($40 per barrel) and in fortnightly revisions brought down to Rs 3,500 per tonne. This is in addition to the 10-20 percent royalty on price of oil and gas realized and an oil cess of 20 %. On top, the government is also entitled to a pre-decided share of profit after expenses are deducted from revenue earned from sale of oil and gas. Read more

Shares of the multinational mining company Vedanta tanked nearly 12 percent to their fresh 52-week low to Rs R221.8 today after the firm invited expression of Interest (EoI) for its Tuticorin-based smelter, which has been shut since mid-2018, following a Tamil Nadu government order. The plant has been shut since May 2018 after a police firing killed 13 people during a protest against environmental pollution allegedly caused by the plant. The last day to submit EoI is July 4, and the bids have been invited in conjunction with Axis Capital. Plant units, including oxygen generation facility as well as residential homes, are also part of the sale offer. The plant has faced closures over alleged violations of environmental norms, as per the advertisement."Interested and financially competent parties shall submit an expression of interest along with a company profile and other relevant credentials latest by 1800 hours, 4th July 2022," Vedanta said in a newspaper advertisement on Monday. Read more

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. Read more

On Monday(20th Sept.2021) metal shares witnessed their biggest meltdown in recent times as a debt crisis at one of China’s biggest property developers, Evergrande, led to a global decline in industrial metals and ore prices. The BSE Metal index tumbled nearly 7 percent in trade in the last session. Naturally, the question arises that Should you enter the stocks at current levels or wait for them to turn cheaper? Tech charts suggest the latter seems to be a better option. Read more

A unit of Vedanta Resources will issue $400 million in notes to an entity under Oaktree Capital Group, as the mining conglomerate looks to meet liquidity needs. The notes will be partly secured by shares in Mumbai-listed unit Vedanta Ltd., according to separate exchange filings from Vedanta and the U.S. hedge fund. The new deal with Oaktree comes after Vedanta Resources sold $1 billion of securities earlier this month. That debt issuance was to fund a tender offer for securities due 2021. The holding company, controlled by billionaire Anil Agarwal, aims to simplify the group’s corporate structure and ease Vedanta. Resources’ access to cash after a failed attempt to delist Vedanta Ltd. in October.

Moody's Investors Service placed Vedanta Resources Limited's B1 corporate family rating (CFR) under review for downgrade today(20th Oct.2020). Concurrently, Moody's has placed under review for downgrade the B3 ratings on the senior unsecured bonds issued by Vedanta and those issued by its wholly-owned subsidiary, Vedanta Resources Finance II Plc, and guaranteed by Vedanta, affecting $4.2 billion in outstanding debt. The rating outlook was changed to ratings under review from negative. "The review follows an increase in refinancing risk and significant funding needs at the holding company level, following Vedanta Resources' failure to acquire the balance shareholding in key subsidiary Vedanta Limited that would have improved access to group cash," the report Kaustubh Chaubal, a Moody's vice president and senior credit officer as saying. Read more

The metals major is about to close a 5-day reverse book building process today (Oct. 9) in which public shareholders have already tendered 137.1 crores of the total 169.73 crore shares held by them, against the minimum requirement of 134 crore shares taking the promoter shareholding to above the 90% threshold required for a successful delisting. Shares of the company closed 3.83 per cent higher at Rs 122.10 on Friday, Of the 137 crore shares, more than 69 crore shares tendered up to Rs 155 per share, 21 crore at Rs 160 per share and 31.80 crore at Rs 320 per share. The Bombay Stock Exchange has extended the bidding till 7 pm today as some of the retail shareholders reportedly faced trouble in tendering shares. The discovered price on account of the reverse book building process will be announced soon. It is the price at which the promoter shareholding reaches 90% of the total issued and paid-up equity share capital of the company. Read more

Shares of Vedanta Limited dropped 6 per cent to Rs 120.20 on the BSE after the Madras High Court refused to allow reopening of Sterlite copper smelting plant in Tamil Nadu's Thoothukudi. The High Court upheld the Tamil Nadu government's order of May 2018, which directed the closure of Vedanta's facility. The judgment was pronounced on August 18 by a Division Bench of Justices TS Sivagnananam and Bhuvani Subbaroyan. Vedanta Limited had moved the court challenging the state government's closure order against its Sterlite Copper Plant on May 28, 2018. The Thoothukudi Sterlite copper smelting plant remains shut since April 9, 2018, after the Tamil Nadu Pollution Control Board (TNPCB), through an order dated April 9, 2018, rejected the Consent to Operate (CTO) for the plant and issued a direction for closure and disconnection of power supply at the plant. 13 people were allegedly shot dead by the police on May 22, 2018 during a protest against the plant. Read more

In an out-of-turn announcement, the NSE yesterday (2nd July 2020) announced that life insurance player HDFC Life will replace the outgoing Vedanta Ltd in the Nifty50 index from July 31, as the latter got shareholders' approval on June 25 for delisting. Meanwhile, analysts at ICICI Securities expect that in the semi-annual change in the Nifty50 constituents to be announced by August-end, SBI Life Insurance will enter the index, replacing Zee Entertainment (ZEEL). These changes, according to the brokerage firm, will improve the earnings growth profile of Nifty50, and also increase the weight of non-lending financial services stocks in the index. Read more

Vedanta on 6th June (Saturday) posted a net loss of Rs 12,521 crore for the quarter ended March 31 on the exceptional loss of Rs 17,132 crore, primarily due to impairment of assets in oil and gas, copper and iron ore business. The company had posted a net profit of Rs 2,615 crore in the corresponding quarter last year. Chief Executive Officer, Vedanta, said “The COVID pandemic has hit the world and us in the last quarter of the year. We have taken a pro-active approach to keeping our assets and people safe while ensuring optimum operations during these difficult times." Net sales also declined 16 percent YoY to Rs 19,513 crore in Q4FY20 against Rs 23,092 crore in the same period last year. Read more