As i do usually, i was scrolling through the news feed yesterday and found this news which is kind of interesting as it may seem like a company specific decision but it may have a bearing on the whole industry.
The news I’m talking about is Promoters of Vedanta ltd have decided to add upto 4.57% at 350 rs per stock. As I checked out BSE website here, Promoters are already holding more than 65%.
Fun fact is : Last year, Promoters tried to delist the company by buying back the shares at 87.5 Rs. But it got failed thanks to LIC who said they are willing to sell their holdings only at 320 rs then.
Earlier this year, LIC again increased their stake in the company by acquiring 61 lakh shares.
Considering all the developments in this company, where promoters wanted to delist at 87.5 rs initially to adding more stake at 350 currently, It makes one wonder what is cooking in the sector. Are the promoters making this move keeping in mind their shareholders and more returns to them or is it something related to the future of how the commodity cycle is going to be as they surely would know much about the sector than us?
No wonder, Metal index is the top gainer today.
What are your views on this news? Is it company specific action or is it reflecting about what lies ahead for the sector?