Vedanta promoters were thinking about selling up to a 2.5 percent

Vedanta Resources Ltd, the parent company of Vedanta Ltd, has strongly denied any rumors about selling a stake in its subsidiary. “Vedanta Resources strongly denies any plans to sell a stake in Vedanta Limited,” a spokesperson told CNBC-TV18.

Last week, media reports claimed that Vedanta promoters were thinking about selling up to a 2.5 percent stake in Vedanta Ltd for over Rs 4,000 crore.

Earlier, Vedanta Group Chairman Anil Agarwal shared in an interview with CNBC-TV18 that he plans to keep the current stakeholding as is. “We hold around 62-61 percent of the company and are comfortable with that. If any investment banker brings us an idea, we’ll consider it. But at this moment, there’s no plan to reduce our holding below 61.5%,” Agarwal said.

As of Q4FY24, Vedanta’s promoters held a 61.95 percent stake in the company. Since December 2022, the promoter stake in Vedanta has slightly decreased from just under 70 percent to just over 60 percent.

Biggest Wealth Creator So Far in FY25

The Vedanta Group, including Vedanta Ltd and Hindustan Zinc Ltd, has been the top wealth generator for investors on Dalal Street this fiscal year. The combined market valuation of both companies has surged by Rs 2.2 lakh crore.

Between March 28 and June 20, 2024, the market capitalisation of the Vedanta Group increased by over Rs 2.2 lakh crore, according to stock exchange data. This growth outpaced major Indian businesses like Reliance Industries, Mahindra Group, and the Tata Group during the same period.

The share prices of Vedanta and Hindustan Zinc have doubled from their 52-week lows, driven by several positive factors, including the proposed demerger, management’s consistent focus on reducing debt, and significant improvement in earnings.

In comparison, the Adani and Mahindra groups each saw their market cap rise by Rs 1.4 lakh crore.

While the Tata Group’s market cap grew by over Rs 60,600 crore, Reliance Industries’ market valuation fell by more than Rs 20,656 crore during this period.

Investor confidence in Vedanta Group is evident from the increasing shareholding of institutional buyers. Foreign institutional investors’ holding in Vedanta rose to 8.77 percent at the end of March quarter from 7.74 percent a quarter earlier.