Vedanta Iron and Steel shares rally 16% in 3 days as Azim Premji-backed fund buys shares worth Rs 102 crore

Shares of Vedanta Iron and Steel jumped 5% to hit the upper circuit for the third consecutive session on Wednesday, extending gains to over 16% since Azim Premji-backed Premji Invest’s PI Opportunities AIF V LLP bought shares worth Rs 102 crore after the stock’s market debut on Monday.

PI Opportunities AIF V LLP, an investment arm of Premji Invest, which is owned by Indian billionaire businessman and Wipro Chairman Azim Premji, bought nearly 4.84 crore shares worth Rs 101.68 crore at Rs 21.02 apiece through a bulk deal on Monday.

Among the four Vedanta Group companies listed on Monday, Vedanta Iron and Steel has emerged as the top performer so far, adding more than Rs 1,255 crore to its market capitalisation in just three trading sessions.

The stock debuted at Rs 20 apiece on the NSE, valuing the company at around Rs 7,821 crore at listing. Following the recent rally, its market capitalisation has risen to Rs 9,076 crore as of Wednesday.

Also read: Vedanta Iron & Steel shares list at Rs 22 on BSE as mega demerger concludes

Vedanta Aluminium, the only large-cap stock among the four companies that listed on Monday, hit the 5% lower circuit for the third consecutive session on Wednesday, taking its losses to more than 14% since its market debut. Vedanta Power shares have declined around 2% from their listing price, while Vedanta Oil & Gas also hit the 5% lower circuit for the third straight session, falling over 14% since debut.
Vedanta Iron & Steel has operations across India and Africa and focuses on iron ore exploration, mining and processing. The company also produces high-quality steel, wire rods, TMT bars, pig iron, ductile iron (DI) pipes, ferro-silicon, cement and metallurgical coke.

Also read: 4 new Vedanta Group stocks debut on Dalal Street. What’s ahead?

About Vedanta demerger

In April, Vedanta had announced that each eligible shareholder would receive one share in each of the four demerged entities — Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel — for every Vedanta share held as of the record date, May 1.
While Vedanta’s share price had already adjusted to reflect the restructuring, investors were eagerly awaiting the listing of the four spun-off companies. The stocks have initially been placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.

Also read: Vedanta to be removed from MSCI Global Standard Indexes from June 22

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