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market | IST

Vedanta promoters looking to up stake in co; details here

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Vedanta could be the stock of the day as the promoter entity has announced that it is looking to raise another 4.5 percent stake from the open market. If the buyback of shares is successful, the promoter stake will go up to 70 percent.

Vedanta could be the stock of the day for the second day running as the promoter entity has announced that they are looking to acquire another 4.5 percent stake from the open market. JPMorgan has launched the book on Monday.
Promoters are looking to acquire up to 17 crore shares at an indicative price of Rs 350 per share, which is a 6.5 percent premium to Monday’s closing price.
Even on Monday, the stock was up 6.5 percent and in the last one hour of trade, it saw a big jump. So looks like there is a bit of an anticipation involved.
In terms of institutional holders, LIC holds the key because they own 7.5 percent stake. So their participation would be important. If the buyback of shares is successful, the promoter stake will go up to 70 percent.
Last week, the company also announced restructuring, wherein they are looking to demerge all their businesses. So apart from the business restructuring, the promoter entity is looking to raise another 4.5 percent stake – it will be important to see how it goes through and the indicative price is Rs 350 per share.
Watch the accompanying video for more details.