Vedanta shares gain after board clears acquisition of 2 subsidiaries
- Hot Stocks
admin
- 0
- 3 minutes read
“In approving these acquisitions, the Board of Vedanta Limited believes Vedanta and its shareholders and India’s economy can benefit from the tremendous opportunity these shifting global dynamics provide”, the company said in a press release statement.
Shares of Vedanta Limited gained 1 percent in early trade on July 10 after the company got the approval from its board of directors to acquire 100 percent stake in Vedanta Foxconn Semiconductors (VFSPL) and Vedanta Displays (VDL) through share transfer at face value.
The two are wholly owned subsidiaries of Twin Star Technologies
Limited (TSTL), which is owned by Volcan Investments Limited, the ultimate holding company of Vedanta Limited.
At 10:07am, Vedanta was quoting at Rs 282 apiece, trading 0.7 percent higher than the previous day’s close on the National Stock Exchange.
Follow our market blog for all the live action.
“In approving these acquisitions, the Board of Vedanta Limited believes Vedanta and its shareholders and India’s economy can benefit from the tremendous opportunity these shifting global dynamics provide,” the company said in a press release statement.
The decision comes after capital market regulator Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 30 lakh on Vedanta for violating the market regulator’s disclosure requirements.
Sebi stated that Vedanta had breached its regulations by publishing a press release on its website, which created the impression that it had entered into a partnership with Foxconn to manufacture semiconductors in India. However, the deal was actually with Vedanta’s holding company.
As per Vedanta’s statement, the semiconductor market had a value of $24 billion in 2022 and is projected to increase to $80 billion by 2026. Similarly, the display panel market, which is currently estimated at $7 billion, is anticipated to expand to $15 billion by 2025.
Vedanta recently received Rs 1,920 crore after the integrated miner Hindustan Zinc declared a dividend of Rs 7 per equity, the first in the financial year 2024. The Anil Agarwal-led company holds a 65 percent stake in the mining company.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
:max_bytes(150000):strip_icc():format(jpeg)/2021Taxes-500035bd4760432bb55973dec0c63b24.jpg "Reverse Mortgage Rules by State (and D.C.)")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1455323545-9132d19b253042298a5e50cebc341788.jpg "Credit Scams to Watch Out For")
:max_bytes(150000):strip_icc():format(jpeg)/InsuranceScorehowitworks-5a42f332494ec90036720943.jpg "What Credit Score Should You Have?")
:max_bytes(150000):strip_icc():format(jpeg)/documents3-2c9f0be43694417aa7a597ee195072f1.jpg "How Long Does an Item Appear on My Credit Report?")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1190222745-b65de6b6c3b948d2a22db5d28c5b1fb8.jpg "Is My Credit Score Good Enough for a Mortgage?")