Vedanta promoter to sell ₹4,136 cr stake
MUMBAI : Anil Agarwal’s Twin Star Holdings Ltd, a promoter entity of Vedanta Ltd, aims to sell a 4.3% stake in the Indian mining company for ₹4,136 crore as part of the billionaire’s plan to reduce debts and transform his Vedanta group into a pure-play green energy and non-ferrous business. According to the terms of a deal brokered by JP Morgan India Pvt. Ltd, Twin Star Holdings will sell 160 million shares in Vedanta to institutional investors at a minimum of ₹258.50 each, a 5% discount to Wednesday’s closing price of ₹272.15 on National Stock Exchange of India Ltd.
Twin Star Holdings, the main promoter entity, owns 1.72 billion shares or 46.4% of Vedanta, valued at ₹1.01 trillion as of Wednesday. “There is a 180-day lock-up on the seller," the terms said, adding that the share sale could be meant for qualified institutional buyers. An email sent to a spokesperson for Vedanta on the stake sale remained unanswered till press time.
“No guidance will be given on pricing until the equity shares are crossed on the stock exchange on 3 August 2023. Investors should indicate the demand sensitivities across the price range," said the note on the terms of the transaction, a copy of which has been reviewed by Mint. Vedanta Resources Ltd, the London-based parent of Vedanta Ltd, is pushing to slash its debt, which stood at $6.5 billion as of May 2023.
The UK company has been relying heavily on dividends from its Indian subsidiaries, raising concern among investors about depleting reserves at its units. Vedanta Resources’ debt ballooned to $16 billion as of March 2022, after which it embarked on a drive to become a zero-debt company in two-three years. The latest fundraising plan is one of the several similar moves made and being
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