Vedanta Share Price: Vedanta Ltd shares fell 3 per cent in early trade on Thursday, January 8, due profit-booking following a sharp rally of around 20
per cent in the last one month. The weakness in Vedanta mirrored the broader metal space, with the Nifty Metal index emerging as the top loser, slipping 1.80 per cent. On the NSE, Vedanta shares opened lower at Rs 619 versus the previous close of Rs 622.20 and continued to decline in early deals. The stock touched a low of Rs 601.35, down over 3 per cent. Around 10 am, the shares were trading about 2.86 per cent lower at Rs 640.40. More than 53 lakh shares of the mining company changed hands within the first 45 minutes of the session. It was among the top losers in the Nifty Metal pack. From technical standpoint, Vedanta shares are trading above its 20-day, 50-day, 100-day and 200-day moving averages, suggesting that the broader trend continues to remain positive.
Vedanta Stock: Buy At Rs 580
Speaking to ET NOW Swadesh, Kunal Parar, Vice President and Technical Research Analyst at Choice Equity Broking, said Vedanta shares are seeing profit booking after hitting record highs near Rs 630.
From a trading point of view, Kunal said that his view remains cautious in the near term as some cooling off may continue. He said that if Vedanta corrects towards Rs 580 level, it could offer a good buying opportunity.
"Vedanta has an immediate support at Rs 580. In the near term, my view from trading perspective is a bit cautious. Rs 580 is a good entry point in Vedanta," he said.
Vedanta Demerger Plan
Vedanta in a filing dated January 7 informed exchanged that it has secured go ahead from the Mumbai Bench of the NCLT to demerge its business into independent, pure-play companies, marking a key milestone in its transformation into focused, sector-leading companies. "With this, Vedanta now enters the execution phase of a transformational demerger, leading to five separate listed companies. Each entity will have a clear strategic mandate, focused leadership teams and dedicated capital structures," Vedanta said in statement.
Under the demerger plan, Vedanta will split its business in to five separate listed companies, with one being the existing company. The five companies that will take share are: VEDANTA LIMITED (already listing); VEDANTA ALUMINIUM; VEDANTA OIL & GAS; VEDANTA POWER and VEDANTA IRON & STEEL. The approval for demerger of merchant power business is currently pending.
Post demerger, for every share held in Vedanta Limited, shareholders will additionally receive one share each of the 4 newly demerged entities.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
