Vedanta Shares Fall 2.7% as Promoters Eye ₹3,000 Crore Stake-Buying Plan

Shares of Vedanta Ltd fell 2.7% on August 11 to close at Rs 276 apiece, amid reports that the company’s promoters may increase their stakes in its oil & gas and steel businesses through open-market creeping acquisitions. According to a report by a business news channel, the promoters are likely to raise around Rs 2,000 crore-Rs 3,000 crore to fund the proposed share purchases. Vedanta and Vedanta Aluminium shares could be pledged or sold to generate the required funds. Under SEBI rules, promoters can acquire up to 5% additional equity in a financial year through the creeping acquisition route. Shares of Vedanta Aluminium also declined 2% to close at Rs 462.30 apiece on August 11. The developments come after Vedanta reported a strong performance for the first quarter. The company's consolidated net profit surged 72% for the quarter ended June 30, supported by higher base metal prices. Revenue rose 51% year-on-year. Vedanta's net profit margin also expanded to 22%. Meanwhile, the cost of raw materials consumed increased 37%, contributing rise in total expenses. Vedanta Aluminium Metal, the pure-play aluminium company formed following Vedanta's demerger, also reported a sharp increase in quarterly profit. Its consolidated net profit rose more than three-fold to Rs 5,629 crore for the quarter ended June 30, compared with Rs 1,781 crore in the same period a year earlier. This was the company's first quarter as an independent entity, with higher aluminium prices providing a significant boost to earnings.