Vedanta shares dropped 6% after a Rs 2,149 crore block deal, with promoter Twin Star Holdings as the likely seller. The stock hit an intraday low of Rs 275.10 on heavy volumes.
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Vedanta Ltd shares fell 6% in early trade Monday after a block deal worth Rs 2,149 crore crossed the exchanges. The transaction involved the sale of roughly 7.6 crore shares, representing about 1.9% of the company's equity.
Twin Star Holdings, the promoter entity controlled by Anil Agarwal, was the likely seller, according to deal terms circulated by multiple broking desks. The block was executed at a floor price of Rs 280 per share, a discount of roughly 5% to Friday's closing price.
The stock opened at Rs 278.50 on the NSE and touched an intraday low of Rs 275.10 before recovering some ground. Trading volumes surged to more than five times the 30-day average in the first hour of trade.
Vedanta has been under pressure this year as the broader metals complex weakens on demand concerns from China and a stronger dollar. The stock is down about 18% from its 52-week high of Rs 346.90 hit in September.
The block deal comes ahead of Vedanta's planned demerger into six listed entities, a restructuring that the board approved in September. The company expects to complete the demerger by the first quarter of 2026, subject to shareholder and regulatory approvals.
Twin Star had previously sold a 2.6% stake in Vedanta in July at an average price of Rs 305 per share, raising about Rs 3,000 crore. The latest sale suggests the promoter group continues to pare its holding to reduce debt at the holding company level.
Vedanta's net debt stood at Rs 56,000 crore as of September, down from Rs 64,000 crore a year earlier. The company has been selling assets and raising equity to bring leverage down.
For the September quarter, Vedanta reported a 27% drop in consolidated net profit to Rs 2,034 crore, hurt by lower aluminium and zinc prices. Revenue fell 6% to Rs 34,500 crore.
The stock now trades at about 8 times trailing earnings, a discount to its five-year average of 11 times. Analysts at two domestic brokerages have cut their price targets on Vedanta in the past month, citing weaker commodity outlook and the dilution overhang from promoter stake sales.
Vedanta's American depositary receipts fell 4.5% in New York on Friday, tracking the broader weakness in emerging market stocks.
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