Finsider International offloads Rs 1,737 crore worth of Vedanta shares; Vedanta in troubled waters?

Finsider International has sold shares worth Rs 1,737 crore in Vedanta, as reported by media sources. The transaction involved the sale of 6.55 crore shares at an average price of Rs 265.14 per share. This sale is part of a larger Rs 8.2-crore share deal that includes other buyers and sellers. While the buyers' names were not disclosed by the exchange, reports suggest that Rajiv Jain's investment firm GQG Partners may be one of the purchasers.

The stake sale by Finsider International, which is part of Vedanta's promoter group holding a 4.40 percent stake, comes amidst the company's efforts to address its outstanding debt, which stands at around $6.4 billion, including a $4.5-billion payment due by fiscal 2025. As of December 2023, the promoter and group entities collectively held 63.71 percent stake in Vedanta.

This development occurs in the context of Vedanta's ongoing restructuring program and its challenges in the wake of the Supreme Court's consideration to potentially restart the shut Sterlite copper smelting plant in Tuticorin, owned by Vedanta. The company has been facing legal and public scrutiny following protests against the plant, resulting in its closure in 2018.

In the third quarter, Vedanta reported a 40.81 percent decline in consolidated net profit to Rs 2,464 crore, with revenue remaining flat at Rs 33,691 crore.

Analysts, such as Deven Choksey, Director at DR Choksey, anticipate continued challenges for Vedanta in the near term due to its restructuring efforts, potentially affecting its stock performance.

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