Anil Agarwal’s Vedanta shares fell by 9% after the government’s decision

Vedanta Share Price: In the stock market, there is a huge decline in the share price of Vedanta in the last two trading sessions. In Tuesday’s session, Vedanta’s share price slipped down to 9 per cent intraday. The stock had closed at Rs 287.35 on Monday. Which went down to the level of Rs 261 on Tuesday. However, at the close of the market, the stock closed at Rs 268.35, down 6.61 per cent.

Vedanta’s stock has fallen by 12 per cent in the last 5 trading sessions. On Tuesday itself, the shares were being sold in such a way that about 3 crore shares were transacted. Ever since the government has opposed the sale of Vedanta’s zinc business to Hindustan Zinc for $ 2.98 billion, Vedanta’s stock is under pressure.

The central government has warned Vedanta of legal action for selling its zinc business to Hindustan Zinc. The government holds 29.54 per cent stake in Hindustan Zinc. This step of the government has dealt a major blow to Vedanta Chairman Anil Agarwal’s efforts to reduce his debt. In January, Hindustan Zinc had agreed to buy THL Zinc of Mauritius from Vedanta for $2.98 billion. Vedanta holds 64.92 per cent stake in Hindustan Zinc. This company produces zinc, lead, and silver.

Earlier rating agency S&P Global Ratings had said that Vedanta’s credit rating could be impacted if Vedanta fails to sell its international zinc assets to raise $2 billion. It is very important to sell Vedanta’s South Africa and Namibia stable zinc business so that the parent company Vedanta Resources does not face any problem in cash availability. Otherwise the company may face cash flow problem.

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