Committee Meeting Announcement: Vedanta has informed the stock exchanges about a crucial committee of directors meeting scheduled for Thursday, September 21.
Non-Convertible Debentures Proposal: The meeting will discuss a proposal to issue Non-Convertible Debentures (NCDs) through private placement.
Routine Refinancing: Vedanta clarifies that this NCD issuance is part of its regular refinancing activities conducted in the ordinary course of business.
Debt Repayment Challenge: Vedanta Resources, the parent company of Vedanta, faces significant bond repayments, with nearly $2 billion due in the financial year 2025. The total debt repayment obligation for the next financial year is $3.6 billion.
Konkola Copper Mines Transfer: Chairman Anil Agarwal announced on September 12 that Konkola Copper Mines may be transferred from Vedanta Resources to the India-listed firm Vedanta Ltd at the right valuation.
Stock Performance: Vedanta's shares have experienced a challenging year, declining by 25 percent in 2023, following a 10 percent decline in 2022.
Previous Surge: In 2021, Vedanta's stock had doubled in value, driven by a strong commodity cycle and the promoters, led by Anil Agarwal, increasing their stake in the company.
Analyst Recommendations: Of the 14 analysts covering Vedanta, only three have a buy rating on the stock, five recommend holding, and six advise selling the stock.
Technical Analysis: Ruchit Jain of 5paisa.com suggests that Vedanta's stock appears to be in a corrective phase, with an immediate resistance level in the range of Rs 240-245 and a possible correction to Rs. 220-210 in the short term. On Friday, September 15, the stock closed 0.3 percent higher at Rs 237.