Vedanta shares gain as firm secures term loan from Power Finance Corp
Shares of Vedanta rose 3% amid a correction in Sensex and Nifty today after a report said the mining conglomerate has secured an 11-year term loan of Rs 3,918 crore from Power Finance Corporation Ltd (PFC). Vedanta stock gained 3% to Rs 381.70 on Tuesday against the previous close of Rs 370.55 on BSE. Market cap of the firm rose to Rs 1.39 lakh crore.
A total of 15.72 lakh shares of the firm changed hands amounting to a turnover of Rs 58.72 crore on BSE. Vedanta shares have a one-year beta of 0.8, indicating low volatility during the period.
Vedanta shares rose to a 52-week high of Rs 384 on April 15, 2024.
In terms of technicals, the relative strength index (RSI) of Vedanta stands at 83.8, signaling the stock is trading in the oversold territory. Vedanta shares are trading higher than the 5 day, 10 day, 20 day 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The financial closure will enable Vedanta to expedite completion of its power projects. Vedanta Group plans to raise the operating capacity of its power business in India to 4.8 GW by FY27. The latest financing follows Vedanta group’s takeover of Meenakshi Energy Ltd on December 28 in an NCLT-driven insolvency process.
Meenakshi Energy has a coal-based power plant at Nellore, Andhra Pradesh, which Vedanta will use to supply power to merchants.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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