28 Feb , 2023 By : Monika Singh
Billionaire Anil Agrawal-led Vedanta Ltd stock continued to fall on Tuesday, tumbling down nearly 9% at Rs 261.95. Earlier this month, the government opposed the company’s proposal to sell its international zinc business to Hindustan Zinc Ltd for $2.98 billion over valuation concerns.
According to reports, the government threatened to take legal action to stop the sale of the Africa-based assets to Hindustan Zinc, of which it holds 29.54%. In a letter to Hindustan Zinc, the Ministry of Mines said the deal is a “related party transaction” and the government would “like to reiterate” its dissent. Hindustan Zinc in January agreed to buy THL Zinc Ltd Mauritius from parent Vedanta Ltd for $2.98 billion in phases over 18 months. Vedanta holds a 64.92% equity share of Hindustan Zinc, which is an integrated producer of zinc, lead and silver. Hindustan Zinc, in a separate filing said it would place the ministry’s letter before the board.
S&P Global Ratings had said in a report that if Vedanta Resources is unable to progress with either the $2 billion fundraising exercise or the sale of its international zinc assets to Hindustan Zinc in the near future, its credit rating will face immediate strain.
Vedanta share price has fallen over 12% in the past one week while in the last one year shares have tumbled nearly 30%. The stock touched an intraday low of Rs 262.00 and a high of Rs 282.85. At the current price of Rs 268.10 per share, the market capitalisation of the company stands at Rs 99,676.63 crore on BSE. On April 11, 2022, Vedanta’s stock touched a 52-week high of Rs 440.75 and on July 1, 2022, it touched a 52-week low of Rs 206.10.
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