Vedanta shares plunge 7% amid block deal buzz; promoter Twin Star Holdings likely seller
ADVERTISEMENT
Shares of billionaire Anil Agarwal-led Vedanta fell nearly 7% in early trade on Tuesday amid heavy volumes and speculation around a large block deal. According to reports, promoter entity Twin Star Holdings was looking to sell up to a 1.7% stake in the company through block deals, aiming to raise nearly ₹1,890 crore. The identity of the buyers could not be immediately ascertained.
Driven by strong volumes, Vedanta shares declined by as much as 6.93% to hit an intraday low of ₹284.70 on the BSE. More than 74 lakh shares changed hands in the early deals, indicating strong selling pressure.
Following the sharp decline, Vedanta’s market capitalisation slipped to around ₹1.13 lakh crore.
The metal stock opened at ₹294.95, down 3.58% from its previous close of ₹305.90.
According to reports, the proposed block deal may involve the sale of up to 6.5 crore Vedanta shares at a floor price of ₹291 apiece. The indicated price is nearly 4.9% lower than the stock's previous closing price of ₹305.85 on Monday.
As of March 31, 2026, Twin Star Holdings remained the largest promoter shareholder in Vedanta with a 40.02% stake. The promoter group collectively held a 56.38% stake in the company at the end of the March quarter.
The stake sale comes just a week after the listing of the Vedanta Group's four demerged entities as part of the conglomerate's restructuring exercise. The reorganisation has resulted in five separate companies— Vedanta, Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel.
The management opined that the restructuring would unlock value by creating focused businesses, allowing each entity to pursue independent growth strategies, attract sector-specific investors and operate with greater managerial autonomy.
Speaking to the media after the listing on June 15, Vedanta Group chairman Anil Agarwal said Vedanta had generated a total shareholder return of around 300% and delivered a cumulative dividend yield of 55% over the past five years.
He described the demerger as the beginning of the group's next phase of growth, with each company benefiting from sharper strategic focus, independent management and improved access to capital. Agarwal also expressed confidence that the newly listed businesses have the potential to evolve into $100-billion companies. The group plans to invest nearly $20 billion over the next three years to expand its presence across metals, mining, energy and natural resources.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)