Vedanta Ltd Share Price: Billionaire Anil Agarwal-backed metal giant, Vedanta Ltd share price has been on a winning streak for four consecutive sessions. Vedanta stock is up by 5% during these sessions. The latest bullish trend can be attributed to Vedanta's shareholders' approval for its big demerger, and also the announcement of NCDs allotment. Trading at above Rs 430 levels, Vedanta stock is a hot bet with 5 brokerages recommending a buy. The highest target price on Vedanta is Rs 663.
Vedanta Share Price:
The heavyweight metal stock stood at Rs 433.55 apiece on BSE, up by 2.40% on February 20, with a market cap of Rs 1,69,534.87 crore. The stock has been on a gaining spree since February 17th. In four sessions straight, the stock has zoomed by 4.99% on BSE.
As of Thursday, Vedanta's price-to-equity ratio stood at 10.20x, while return on equity was at 22.07%.
Vedanta NCDs Allotment:
As per the regulatory filing, Vedanta has received approval from the Committee of Directors for d the allotment of 2,06,000 Indian Rupees (INR) Denominated Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures of face value of Rs 1 lakh each, aggregating to Rs 2,060 Crore in series 1.
The board also approved allotment of 54,000 Indian Rupees (INR) Denominated Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures of face value of Rs 1 lakh each, aggregating to Rs 540 Crores in Series 2 Debentures.
Together, the total size of NCDs allotment will be Rs 2,600 crore on a private placement basis.
Vedanta Demerger:
Additionally, the shareholders approved the Scheme of Arrangement between Vedanta Limited (Demerged Company or Company) Vedanta Aluminium Metal Limited (Resulting Company 1) Talwandi Sabo Power Limited (Resulting Company 2) and Malco Energy Limited (Resulting Company 3) Vedanta Iron and Steel Limited (Resulting Company 4) and their respective shareholders and creditors under Sections 230-232 and other applicable provisions of the Companies Act, 2013 (Scheme).
About 99.9987% of the shareholders were in favour of the demerger scheme. The demerger is of Vedanta and metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited - will be created.
Under the demerger agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta.
BUY Vedanta?
On strong third quarter performance, 5 brokerages have recommended BUY and Outperform on Vedanta. The highest target on Vedanta is set by Nuvama at Rs 663 with a BUY rating.
ICICI Securities has also recommended BUY with a target of Rs 605, while IIFL and Phillip Capital recommended buying with target prices of Rs 570 and Rs 549. Global brokerage CLSA has recommended Outperform on Vedanta for the target of Rs 530.
In Q3FY25, the company recorded consolidated revenue of Rs 38,526 crore, up 4% QoQ and 10% YoY, while consolidated EBITDA stood the highest ever in a third quarter to Rs 11,284 crore, up 30% YoY and 9% QoQ. EBITDA margins came in at 34% up 517 bps YoY. Profit after tax (before exceptional) at Rs 4,876 crore, up 70% YoY and 9% QoQ.
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