The shares of Vedanta Limited, a multinational mining company, are witnessing a continuous decline. The company’s stock fell 9 percent in early trade on Tuesday after being under pressure in eight consecutive sessions. Let us tell you that in the last five sessions, the price of Vedanta shares has seen a decline of more than 12 percent, while in one month it has fallen by about 20 percent.
Its shares were trading 7.17 percent lower at Rs 267.55 per scrip with a marginal correction till 11:40 am.
Decline due to
The fall in Vedanta’s share price comes after the Center objected to a ban on the sale of Hindustan Zinc’s international assets by London-based Vedanta Resources Ltd. This has now affected the dollar bond prices of Vedanta Resources. Also, its shares are declining in India.
It may be noted that last week, due to the proposal to sell Hindustan Zinc, the Center started worrying about valuations. Vedanta held a 65.92 percent stake in Hindustan Zinc as on December 31, 2022. Now after the protests, Hindustan Zinc is facing a decline of more than 4 percent in early trade. At the same time, Vedanta Resources Bond yield has declined by more than 30 percent.
Because of this, the sale of Hindustan Zinc is happening
The parent company Vedanta was in debt for a long time, due to which Vedanta must sell the assets to Hindustan Zinc to reduce the debt burden. According to rating agency S&P Global, if Vedanta is not able to raise $2 billion in the coming time, the credit rating of the company will be negatively impacted.
Vedanta has to pay $1.2 billion by the second half of 2022-23, $4.1 billion by FY24, $3.9 billion by FY25, and $4.7 billion by FY26.
READ MORE:- Unfulfilled dreams will come true as there is a direct way to avail loan
