Vedanta shares: Four reasons why the metal stock was in news today

Shares of Vedanta Ltd were in news primarily for four key reasons today. The metal and mining stock had been hitting 52-week highs for the last three sessions. The stock of Anil Agarwal-led firm touched a 52-week high of Rs 312.50, rising 4.67% intraday in the current session. Market cap of the firm climbed to Rs 1.15 lakh crore. Later, the stock ended 3.92% higher at Rs 310.25 on BSE.

The stock hit a 52-week high of Rs 308 on April 3, 2024 and Rs 301.90 on April 2, 2024.

With the current leg of rally, the stock has minimized its two year losses to 26.39%. In five years, the stock has climbed 65.78%.  The large cap stock has been trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. It signals the stock is trading in bullish zone.

Here’s a look at why Vedanta shares were in news today.

1. Mining in Goa's Bicholim block starts

The firm said it has commenced mining operations at Bicholim mineral block in Goa. The mining in Goa came to a grinding halt in March 2018 after Supreme Court quashed 88 mining leases."Heralding a new era of inclusive development, Vedanta Sesa Goa commenced mining operations at Bicholim Mineral Block- Block 1 in the state of Goa," the company said. In 2022, Vedanta emerged as a successful bidder for the mining block which was auctioned. Vedanta was the highest bidder with 63.55 per cent revenue for Bicholim Mining Block, spread over 485 hectares.

2. Vedanta to raise  Rs 2,500 crore via debentures

The metals-to-oil conglomerate said it would raise up to Rs 2,500 crore ($299.6 million) through debt securities. The funds will be raised through the issue of non-convertible debentures on a private placement basis. The Anil Agarwal-led company did not mention the purpose for which funds would be utilized.

3. Q4 and FY24 business updates

The firm said it delivered highest ever annual volume across key businesses.

Vedanta said alumina production at Lanjigarh Refinery rose 18% (yoy) to 484 kt in Q4 and 3% (qoq) driven by better operational performance. In oil and gas business, average gross operated production came at at 117.8 kboepd in Q4.  Rajasthan block’s average gross production was lower by 6% QoQ and by 13% YoY at 97.8 kboepd.

4  Aluminium refinery capacity expansion 

Vedanta Aluminium announced a major milestone in its ongoing expansion efforts to be among the top 3 global players with 3 million tonnes per annum (MTPA) of aluminium production capacity. The company announced the successful commissioning of the new 1.5 MTPA expansion at its world-class alumina refinery in Lanjigarh, Odisha. With this, the alumina refinery’s production capacity has now increased to 3.5 MTPA from the existing 2 MTPA. This additional 1.5 MTPA capacity is a part of the company’s ongoing expansion to take the overall nameplate capacity at the Lanjigarh refinery from the current 2 MTPA to 5 MTPA, to support its increasing aluminium production.