Investors' attention turns to Vedanta Ltd as it's shares got a boost in morning deals on BSE on Friday after a bulk deal with its promoter Finsider International Company Ltd.
The sale, amounting to 65,518,600 Vedanta shares or a 1.7 per cent stake on the BSE, totaled approximately Rs 1,737.16 crore. The shares were sold at an average price of Rs 265.14 apiece. Finsider International Company previously held a 4.4 per cent stake in Vedanta, but with this transaction, its stake now stands at 2.7 per cent.
While the bulk deal data does not disclose the identity of the buyers, there have been previous reports indicating the interest of Adani group investor GQG Partners in acquiring a stake in Vedanta. GQG Partners, managed by Rajiv Jain, holds stakes in various domestic listed companies, including ITC Ltd, Patanjali Foods, JSW Energy Ltd, IDFC First Bank Ltd, GMR Airports Infrastructure Ltd, and Max Healthcare Institute Ltd.
GQG Partners had emerged as the first strategic investor in the Adani group following a significant market turmoil triggered by a Hindenburg Research report.
In the wake of Vedanta's strong performance in the December quarter, brokerage firms have revised their outlook on the company. Motilal Oswal Securities noted substantial improvement in Vedanta's performance across segments, coupled with enhanced liquidity following the extension of bond maturity at HoldCo by three years. Consequently, the brokerage increased its EBITDA estimates for Vedanta by up to 15 per cent.
Despite acknowledging the company's positive performance, Motilal Oswal Securities maintains a 'Neutral' rating on Vedanta with a target price of Rs 270, suggesting that the stock is adequately priced.
On the other hand, PhillipCapial remains bullish on Vedanta, anticipating further improvements in commodity prices driven by Chinese stimulus measures and increased demand in the latter half of FY24.
The brokerage believes that the demerger of businesses and potential divestment of the ferrous division will enhance Vedanta Resources' flexibility in managing its debt.
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