The Vedanta Limited is a large cap company belonging to Nifty 50 group. For this reason, Vedanta share price influences the benchmark index as per the weightage.
Vedanta Share Price Graph
Vedanta Limited was incorporated in 1965 as a mining company. In 2007, Vedanta acquired 51% controlling stake in Sesa Goa Limited, a global top name in iron and copper mining. Today Vedanta Limited is a large cap company in the mining sector.
Vedanta Limited has risen to this leading position after it took over the controlling stake of Sesa Goa. But high debt made the company balance sheet stagger at some points. Vedanta had a cash-rich subsidiary, the Cairn India Limited. On June 2016, managements of two companies made a joint statement saying that Cairn India will be merged with its parent company Vedanta Limited. This merger would help Vedanta gain access to cash-rich accounts of Cairn and help to recover Vedanta Limited’s debt-ridden state.
The record date for the swap of shares was set at April 27, 2017. Vedanta Limited made a statement on this saying “Cairn India shareholders as on said record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs 17.70 per equity share as approved by the Board of Vedanta on March 30, 2017,”. A joint statement made by the two companies also added that “this merger consolidates Vedanta’s position as one of the world’s largest diversified natural resources companies, with world-class, low-cost assets in metals and mining and oil and gas”.
It has been decided that Vedanta Limited or any of its subsidiaries will not receive any share for their holding in Cairn India. But Cairn India’s shareholders will get 1 share of Vedanta of Face Value Rs 1 for each share held in Cairn India and 7.5% of 4 nos. of redeemable preferential shares of Face Value of Rs 10 each of Vedanta Limited.
After the takeover, Vedanta Limited will have a market capitalization of $15.6 and will also have a higher percentage of free floating shares at 49.9%.
Vedanta has been a leader and one of the top global companies. It has been awarded many awards for excellence in its sector and awards for CSR.
Company Financials – Vedanta share price is Rs 3963.25 (as on 30.06.17, EOD) in BSE. As per latest data, the standalone basis P/E is 08.36 versus average industry P/E of 12.o8, EPS is Rs 29.78. Market cap is Rs 93,245.82 crores. The face value of a share is Rs 1.
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