According to the sources, promoters may buy and sell stake in select group companies such as Oil & Gas, and Iron & Steel. This is likely to be done via open market creeping purchases.
A Creeping Purchase is defined is a gradual, step-by-step buying of shares of a company through the open market over a prolonged period of time.
As per the SEBI regulations, promoters could acquire up to 5% stake in their companies through the creeping route in a year.
The sources further said that the promoters are likely to raise between ₹2,000 crore to ₹3,000 crore for increasing their stake in the oil & gas and iron & steel arms. The fund raising is likely to be done by pledging or selling shares of either Vedanta Ltd. or Vedanta Aluminium.
CNBC-TV18 has reached out to Vedanta on this story and is awaiting a response.
In an interaction with CNBC-TV18 during the listing of these demerged entities, Vedanta Group Chairman Anil Agarwal had said that for him “Maalik Banke rehna zaoori nahi hai”, meaning it is not necessary for him to have ownership / controlling stake.
Agarwal had said back then, that he will go to any extent to ensure the company’s growth whether it be restructuring, going abroad or any other method.
Shares of Vedanta are down to the lows of the day, currently trading 2.2% lower at ₹277.45.
Shares of Vedanta Oil & Gas are currently little changed at ₹39.75.
Vedanta Iron & Steel shares are currently locked in a 5% upper circuit at ₹38.81, while those of Vedanta Aluminium Metal are down 0.7% on Tuesday at ₹469.15.
