Vedanta share price surged 9 per cent to hit record high of Rs 208.15 on Monday amid report that promoter group is mulling another stake buy in the company. Vedanta shares have delivered an impressive return of 245 per cent over the last eleven months, from its 52-week low of Rs 60.3 as on March 30, 2020. The stock has jumped 12 per cent in the last five days and 26 per cent over one month period. In the calendar year 2021, Vedanta has outperformed the market by rallying 27 per cent, as against a 3.9 per cent gain in the BSE benchmark Sensex. The market capitalisation of Vedanta stands above Rs 75,000 crore.
The promoter of the mining company is planning to buy 5 per cent additional stake at Rs 210 a share in the next fiscal year. The new open offer plan of Vedanta promoters to buy shares from the public is seen as a renewed attempt towards delisting of the company. Vedanta's promoters failed to delist its scrip from Indian stock exchanges in October last year due to insufficient number of shares being offered in the buyback proposal of Vedanta Resources.
After the failed attempt, billionaire Anil Agarwal-owned Vedanta Resources along with Twin Star Holdings, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II have used this financial ammunition to raise its stake in Vedanta Ltd. Earlier in January this year, the company launched a voluntary open offer to increase its stake by 10 per cent. The promoters hold 55.11 per cent stake in Vedanta, while public shareholders own 44.55 per cent shares in the company.
The delisting of Vedanta would give the company complete control of its cash-rich subsidiary, Hindustan Zinc (HZL), given that Vedanta Resources has debt of about Rs 40,000 crore.
Also Read: Will Vedanta's open offer be a precursor to delisting?
Also Read: Vedanta promoters float open offer for 10% stake at Rs 160 per share