Vedanta sees 9% decline in shares: Twin Star Holdings

Vedanta’s stock witnessed a significant decline of approximately 9% following a block deal that occurred on the stock exchanges. This deal involved the exchange of approximately 165 million equity shares of Vedanta, amounting to a total value of around ₹4,270 crore.

The shares of Vedanta experienced a notable drop, reaching a decrease of as much as 8.96% to trade at ₹247.80 per share on the BSE. This value is slightly above its 52-week low of ₹245.85 per share, which was recorded on August 4, 2022.

Reports indicate that Twin Star Holdings Ltd, a promoter entity of Vedanta, is apparently in the process of selling a 4.3% stake in the company. This equates to a total of 160 million shares, with an estimated value of ₹4,136 crore. This strategic move aligns with the broader plan of billionaire Anil Agarwal, who aims to reduce debts within the Vedanta group and transition it into a focused green energy and non-ferrous business.

According to sources, Twin Star Holdings is anticipated to sell these shares to institutional investors at a minimum price of ₹258.50 each, which represents a 5% discount when compared to the previous day’s closing price of ₹272.15 on the National Stock Exchange of India Ltd. The deal has been facilitated by JP Morgan India Pvt. Ltd.

Twin Star Holdings holds a significant portion of Vedanta’s shares, owning a substantial 46.4% stake, equivalent to 1.72 billion shares, which was valued at approximately ₹1.01 trillion as of the previous trading session.

The terms of the deal outline a 180-day lock-up period for the seller, potentially indicating that this share sale might be targeted towards qualified institutional buyers.

Throughout the current year, Vedanta’s shares have experienced a decline of 18%, with the stock showing a 9% drop over the span of just one month.

As of 10:40 am, the share price of Vedanta was observed trading at ₹253.45 per share on the BSE, representing a decrease of approximately 6.89%.

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