Vedanta spurts on heavy volumes

Vedanta jumped 9.24% to Rs 164.10 after the counter witnessed multiple block deals in early trade today, 24 December 2020.

On the BSE, the counter clocked a volume of 12.85 crore shares as against its average trading volume of 23.05 lakh shares in the past one quarter. The stock gained 13.33% to hit a high of Rs 170.5 on BSE today.

On the NSE, the scrip surged 9.14% to Rs 164.20. The counter clocked a volume of 23.18 crore shares compared with its average trading volume of 4.02 crore shares in the past one quarter. The stock added 13.46% to hit a high of Rs 150.45 on NSE today.

In the past one month, the stock has zoomed 41.62% while the benchmark S&P BSE Sensex has added 4.87% during the same period.

The media reported that the company's promoter, Vedanta Resources, which failed to garner the required number of shares to delist its Indian arm Vedanta in October, will buy around 4.9% stake on Thursday through block deals. Promoters have fixed the price range between Rs 150 and Rs 160 per share for the offer. With this transaction, promoters stake in Vedanta will likely to increase from 50.14% to 55.04%.

Vedanta, a subsidiary of VRL, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia.

The diversified natural resources company posted a 62% decline in consolidated net profit to Rs 824 crore in Q2 September 2020 as against Rs 2,158 crore in Q2 September 2019. Net sales during the quarter fell 4.3% YoY to Rs 20,804 crore.

Vedanta cited lower volume at oil & gas business and lower commodity prices which were partially offset by higher volumes at Zinc India business, and rupee depreciation as reasons for lower revenues.

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