Vedanta Ltd: A Major Development in the Metal and Mining Company

In the world of finance and industry, Vedanta Ltd has been making headlines today. The board of Vedanta has officially announced its plan to issue non-convertible debentures, aiming to raise approximately ₹2,500 crores. As of today, Vedanta’s stock is trading at ₹224.50, with its 52-week low at ₹224.15. It’s possible that the stock may touch its 52-week low today. But what about the company’s market capitalization? Let’s dive deeper into this significant development.

Understanding Market Cap

Vedanta Ltd, with a total of 5.96 lakh shares traded on the Bombay Stock Exchange (BSE), is currently involved in a business worth ₹13.58 crores. Consequently, Vedanta’s market capitalization has now reached ₹84,213 crores. Additionally, the stock has a beta of 1.2, indicating a high level of volatility during this period.

The Decision on Debentures

On Thursday, the committee of directors has considered and approved the issuance of 2,50,000 secured, unrated, unlisted, redeemable, non-convertible debentures at a face value of ₹1,00,000 each through private placement. This decision has paved the way for raising a total of ₹2,500 crores.

Examining RSI

The Relative Strength Index (RSI) of Vedanta stands at 37.1, signifying that the stock is neither oversold nor overbought at the moment. Furthermore, Vedanta’s shares are trading below their 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages.

A Year of Fluctuations

Over the past year, Vedanta’s shares have witnessed a significant decline of approximately 20.01%. During this period, the company’s stock has dropped to ₹56.15.

Dividends for Shareholders

In the first quarter of the fiscal year, Vedanta witnessed a 40% decrease in net profit, followed by a ₹3,308 crore decline in net profit. Additionally, the company’s revenue during Q1FY23 decreased by 13% from ₹38,251 crores to ₹33,242 crores. Vedanta has also announced a dividend of ₹18.5 per share.

Understanding Vedanta’s Business

Vedanta Limited is a subsidiary of Vedanta Resources Limited and operates in India, South Africa, and Namibia, dealing in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminum, and power.

For investors and industry observers, this is indeed a significant update on Vedanta Ltd. The issuance of non-convertible debentures and the fluctuations in the company’s stock price and financial performance raise intriguing questions about its future trajectory. As the market continues to evolve, Vedanta’s decisions and outcomes will be closely monitored by stakeholders.