New Delhi: Shares of mining sector giant Vedanta Ltd. may gain momentum today. The reason for this is that a power company is going to fall in Vedanta’s lap. Vedanta has announced to buy debt-ridden company Meenakshi Energy for Rs 1440 crore. For this, Rs 312 crore will be paid upfront while Rs 1,128 crore will be in the form of secured unlisted NCDs issued by Meenakshi Energy. Meenakshi Energy has a 1,000 MW coal based power plant at Nellore in Andhra Pradesh. The process of insolvency proceedings started against this company on November 7, 2019. Vedanta had placed the highest bid for it.
Shares of Anil Agarwal-led Vedanta closed at Rs 324.10, up 2.08 per cent on Wednesday. Its 52-week high of Rs 440.75 was touched on April 11 last year. Since then it has fallen by about 25 per cent. Promoters hold 69.69 per cent in the company, while foreign institutional investors hold 17.53 per cent and mutual funds hold 2.1 per cent.
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How far can the price reach
The company’s consolidated sales for the quarter ending September 30, 2022 stood at Rs 37,351 crore. This is 5.09 percent less than the previous quarter. The company’s profit stood at Rs 1808 crore in the September quarter. Experts say that the prices of commodities have started rising again. In the last six months, the price of copper has increased by about 20 per cent. Hence Vedanta can move towards Rs 400 with a stop loss of Rs 300.
