Vedanta Block Deal: This is a massive block deal from Vedanta. Is GQG purchasing shares from promoters?

A day after US-based GQG Partners was reported to be in talks to buy a stake in Vedanta, a massive block deal worth over 2% stake worth Rs 2,600 crore was reported on the counter on Thursday.

ET Now reported that final negotiations for a potential stake sale worth more than $1 billion have already taken place and the deal could take place in the coming days in the form of a block deal. read here

As of the end of December, the promoters and group companies cumulatively held 63.71% stake in Vedanta Ltd. The stock was flat on the BSE this morning after rising 5% yesterday.

Details of the block deal will only be known in the evening when exchanges report their data.

The planned stake sale is part of the Anil Agarwal-led mining company’s efforts to raise capital to repay debt.

As of the end of December, Vedanta’s consolidated net debt stood at Rs 62,493 crore ($7.5 billion). The multi-billion dollar share sale is expected to take place in the form of a block deal and will reduce the parent company’s debt by a third, sending a message to the market that Vedanta promoters are very serious and open to some sales. The family used silver coins to manage their debt, the news channel reported. Last week, parent company Vedanta Resources said it had paid $779 million upfront to bondholders and completed repayments as part of a debt restructuring.

The repayment follows the global mining major agreeing earlier this year to extend the maturity of $3.2 billion worth of bonds until 2029.

A year ago, GQG Partners rose to prominence on Dalal Street after the global investment firm took a contra bet on Adani Group and bought shares of four companies for Rs 15,000 crore. group.

The Rajiv Jain-led company also has investments in other Indian companies such as Patanjali and ITC.

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