NEW DELHI: Billionaire Anil Agarwal-led Vedanta Resources is reportedly planning to sell a 2.5% stake in Indian listed firm Vedanta Ltd through block deals in the next couple of weeks. The promoter group is likely to sell about 9 crore shares to raise around Rs 4,000 crore through block deals. The controlling firm of the mining-to-oil conglomerate has been regularly selling shares in the open market in its effort to reduce debt.
When contacted, Vedanta spokesperson, however, denied reports of any stake sale. “Vedanta Resources strongly denies any plans to sell a stake in Vedanta Limited,” said Spokesperson, Vedanta Resources Limited.
Earlier in February, the promoters had sold stake in a block deal that was valued at over Rs 2,615 crore. Finsider International, which is part of Vedanta Resources, sold more than 6.55 crore Vedanta shares at Rs 265.14 apiece for Rs 1,700 crore.
Since December 2022, Vedanta’s promoter shareholding in the firm has declined from nearly 70% to just over 60%. At the end of financial year 2024, Vedanta’s promoters held a 61.95% stake in the company. Its net debt rose 25% to Rs 56,300 crore as of March 31, while its full-year cash and cash equivalents fell to Rs 2,800 crore from Rs 6,900 crore a year earlier.
Earlier this week, Vedanta Resources in its annual report said it will seek to cut its debt by $3 billion over the next three years. In the last two years, Vedanta Resources , which had received multiple rating downgrades by rating agencies due to high debt level, has reduced its debt by $3.70 billion.
The stake sale by Vedanta Resources comes at a time when shares of Vedanta Group companies are on rise. The group, whose firms include Vedanta Ltd and Hindustan Zinc Ltd, has seen its combined market valuation grow by Rs 2.2 lakh this year. While Vedanta shares have grown by 82.50% in 2024 so far, Hindustan Zinc has rallied by 109%.
On Thursday, the company’s board approved the fundraising of Rs 1,000 crore by issuing non-convertible debentures through a private placement.
In the last two months, Vedanta’s board has already approved raising up to $300 mln through debentures and a further up to $1 billion, although it is yet to decide on the structure and mode of that fundraise.
Vedanta is in the middle of splitting into six different units in a move aimed at shoring up the group’s financial performance.