Vedanta refutes news of selling Sterlite copper plant; check stock reaction

Shares of Vedanta Ltd dropped nearly 0.50 percent in early trade on June 23, post the dismissal of news reports by the company related to the selling of Sterlite copper plant in Thoothukudi. At 9:24 am the Vedanta Ltd stock was trading 0.37 percent lower at Rs 279.03 on NSE.

Details about the denial

According to a filing with BSE on June 22, Vedanta Ltd has refuted claims made by several media articles of selling Vedanta’s Sterlite copper plant as baseless. The notification further stated that, “In connection with the captioned matter, it has come to our notice that certain sections of the media has carried out the news article that Vedanta Limited is selling the Sterlite Copper Plant, Thoothukudi. The said media articles are wrong, baseless and incorrect and the same is refuted by the Company.”

Also Read: Wrong, baseless and incorrect: Vedanta on reports about selling its Sterlite Copper Plant in Thoothukudi

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“Sterlite copper is a national asset and had contributed to 40 percent of India’s copper. As the country has become a net importer of copper, which has adversely impacted inter?alia the downstream and ancillary industries and hence, there has been a growing demand for Vedanta?Sterlite Copper to restart its operations.”

Recent Developments in Vedanta Ltd

Mining major Vedanta Ltd donated a total of Rs 155 crore to political parties during the financial year 2022-23, according to a regulatory filing. The amount was donated through the subscription of “electoral bonds”, an exchange filing on June 19 stated, adding that it was higher compared to Rs 123 crore donated in FY22.

Brokerage Views

Brokerage firm JP Morgan has downgraded Vedanta Ltd to neutral from overweight and cut its target price to Rs 280 a share from Rs 350 a share. The brokerage firm said that the fiscal 2024 will be a challenging year for Vedanta if LME Zinc and Aluminum prices do not recover. It expects dividend pay-out to remain elevated.

Also Read: Motilal Oswal bullish on Tube Investments as verticals bounce back, sees 11% upside

Stock Performance

Vedanta Ltd stock has lost 1.47 percent of its value over the last six months. Thus, underperforming the benchmark Nifty50 index which has given a return of 5.42 percent over the same duration.

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