According to sources reported by CNBC TV18, Vedanta Group promoters are planning to raise ₹2,000-3,000 crore to increase their stake in oil & gas and iron & steel arms. The fund raising strategy involves pledging or selling shares of either Vedanta Ltd. or Vedanta Aluminium. Sources indicate that promoters may buy and sell stake in select group companies such as Oil & Gas and Iron Steel through open market creeping purchases, which allows gradual acquisition of up to 5% stake in companies through the open market over prolonged periods. As per CNBC TV18, the promoters may raise their stakes in the oil and gas and steel businesses of the group, with the increases likely to be carried out through open-market creeping purchases.
As reported by CNBC TV18, shares of Vedanta are currently trading 2.2% lower at ₹277.45, while Vedanta Oil & Gas remains little changed at ₹39.75. Vedanta Iron & Steel shares are locked in a 5% upper circuit at ₹38.81, and Vedanta Aluminium Metal is down 0.7% at ₹469.15 on Tuesday. The promoter action comes as these companies have recently listed on the bourses, with the group having demerged its various entities. According to CNBC TV18, the funding structure described, involving the pledging or sale of shares in other group entities to finance the purchases, is the kind of arrangement that investors tend to watch closely at Vedanta, given the group's complex holding structure and its history of debt at the promoter level.
According to CNBC TV18, in an interaction during the listing of demerged entities, Vedanta Group Chairman Anil Agarwal stated that he will go to any extent to ensure the company's growth, whether through restructuring, going abroad, or other methods. Agarwal emphasized that 'Maalik Banke rehna zaoori nahi hai', meaning it is not necessary for him to have ownership or controlling stake. This philosophy supports the current promoter strategy of increasing stakes in select group companies while maintaining flexibility in ownership structure. The developments come against the backdrop of the group's broader restructuring, including its plan to demerge its businesses into separately listed entities, which has been a central theme for the Vedanta complex.
As reported by CNBC TV18, the creeping purchase strategy falls under SEBI regulations that allow promoters to acquire up to 5% stake in their companies through gradual open market purchases over a year. This approach provides flexibility for promoters to increase their holdings while maintaining compliance with regulatory requirements for transparent market transactions. The creeping acquisition route allows the stake increases to be done gradually within the annual limit without triggering an open offer. For investors, the significance of such a move, if it materialises, would lie in the signal it sends - promoters raising their own holding through open-market purchases is often read by the market as a show of confidence in the underlying businesses.
