Blackrock, ADIA & domestic mutual funds hike stake in Vedanta Ltd

NEW DELHI: The world’s largest asset manager BlackRock, as well as the Abu Dhabi Investment Authority (ADIA), along with domestic mutual funds like ICICI Mutual Fund and Nippon India Mutual Fund have increased their holdings in Vedanta by almost 2 per cent during the last four months, said market participants.

At the same time, FIIs increased their stake in the conglomerate by 1.2 per cent during the corresponding period, they added. The recent rally in Vedanta share price on the back of demerger plans, deleveraging and soaring metal prices has led to a bullish call by domestic and international funds.

“Vedanta has witnessed significant buying interest. Many foreign and domestic investors have increased their stake on the back of strong fundamentals,” according to a dealer in a foreign brokerage house.

This comes at a time when the Vedanta stock has surged almost 30 per cent, adding about $3 billion to its market capitalization since December.

Shares of Vedanta Ltd hit a 52-week high of Rs 322 on April 5, closing up more than 3 per cent during the trading session, and more than 15 per cent in the last five trading sessions (April 1 to April 5). This is in line with the strength in global metal prices that are soaring due to multiple factors. Strong industrial data from China indicated an expansion in manufacturing activity for the first time in six months.

Vedanta is expected to clock nearly $5 billion of EBITDA in FY24 (April 2023 to March 2024). Similarly, the group is eyeing an EBITDA of $6 bn in FY 25 and scaling it to $7-7.5 bn in the following year on the back of operational efficiencies across businesses. The company is also on track for the demerger of its key businesses.