London-based Vedanta Resources raises stake in India unit to 55.1%

London-based Vedanta Resources (VRL) has raised its stake in its India listed unit, Vedanta to 55.11 per cent by buying from open market shares worth Rs 2,959 crore.

VRL bought 18.5 crore shares at a price of Rs 159.94 per share, the company said in a statement on its website.

It made the purchase through block deals. The purchase of shares in the open market helped the firm raise its stake in Vedanta to 55.11 per cent from the current 50.13 per cent. The move comes weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges.

The delisting failed due to an insufficient number of shares being offered in the buyback proposal of VRL.

"This is in line with our stated strategic priority for simplifying the group structure to align the group's capital and operational structures, streamline the process of servicing the Group's financing obligations and improve a range of important credit metrics," it said.

The simplification process which has been underway for several years has involved mergers of group companies and may involve other share acquisitions in accordance with applicable law, the company said without elaborating.

J P Morgan India acted as the broker to VRL for this transaction.