The share price of Vedanta surged over 13 percent on Thursday after 19.1 crore shares (5.1 percent equity) worth Rs 3,042 crore changed hands via block deals on the BSE and NSE.
The stock rose as much as 13.3 percent to the day's high of Rs 170.5 per share on the BSE. Just in two trading sessions, the stock has risen nearly 20 percent.
As per many media reports, Vedanta Resources would buy close to 4.9 percent stake in the Indian arm through block deals. The promoter fixed the price at Rs 150-160 apiece.
This will raise promotors' stake in the company to 55.04 percent from 50.14 percent. As per SEBI norms, promoters holding more than 25 percent but less than 75 percent are allowed to acquire up to 5 percent a year through such creeping acquisition.
JP Morgan India will act as the broker to the promoters’ company Vedanta Holdings Mauritius.
This move comes after the company failed to garner enough shares to delist from the Indian exchanges. During the delisting offer in October, promoters were able to get only 125.47 crore confirmed bids against the required 134.1 crore shares.