Vedanta’s shares tumbled after its delisting bid failed, bringing back into focus its undervaluation
The Madras HC upheld the Tamil Nadu government's order of May 2018, directing closure of the copper unit.
The sale of units has been priced at a discount of 1.26 percent to 3.25 percent of today’s closing price of Rs 100.26. Citi and Edelweiss are the brokers/advisors to the deal, say sources.
Vedanta also said it will file a writ petition before the Madras High Court against orders directing the closure of the Sterlite copper plant
The court directed the Tamil Nadu state pollution regulator to pass a fresh order of renewal of consent for Vedanta's copper smelter within 3 weeks.
Some 47 companies and consortia registered to present bids at the auction at Sao Paulo's stock exchange B3, which led to a competitive round.
Following violence and police firing on May 22 and 23, in which 13 people died, the plant was closed by the state government.
The violence during the protest and the police firing, which claimed 13 lives, were unfortunate. But some people were not able to bear with the remarks of other people on the issue, state BJP President Tamilisai Soundararajan told reporters.
The plant produced 46 percent of India's copper demand. A permanent shut down will squeeze domestic supply for the next two months.
Ironically, the political parties that are protesting against the plant have at some point or the other, been responsible for clearing the path for the plant
The move comes a day after the Tamil Nadu government ordered the state Pollution Control Board to seal and "permanently" close the Sterlite Copper plant following last week's protests, over pollution concerns, during which 13 people were killed in police firing.
The Delhi-based Centre for Science and Environment (CSE) claimed on Wednesday that the plant did not get the required permissions from the three states over the ‘potential of creating environmental hazards’
The DMK had yesterday called for an all-party protest at all the district headquarters on May 25 to condemn the police firing in Tuticorin district.
Amelia North is in Madhya Pradesh and has a reserve of 70.28 million tonne. This is meant for the power sector and there are 11 qualified bidders for this, which include some of the major power players.
Wipro gains 6 percent while Hindalco, HDFC Bank, Sesa Sterlite and ONGC. Dr Reddy's Labs and M&M are among losers in the BSE.
ArcelorMittal today said it has voluntarily surrendered its stakes in 2 coal blocks, Rampia and Dip side of Rampia, following its decision to exit from the USD 12 billion steel project in Odisha in July last year.
Moily, who took over the additional portfolio last month from Jayanti Natarajan, plans to clear the backlog before end of the month.
The bidders are a mix of companies that are keen on the space - Larsen and Toubro (L&T), Tata Power, Adani, JSW Energy, Jindal Power, Sterlite and NTPC, plus a consortium that includes NHPC, BHEL and southern coal fields.
Find out how brokerages are placing their bets on Sesa Goa, Ultratech and Bharti Airtel.
Indian ADRs ended higher on Thursday. Tata Motors was up 1.66 percent at USD 23.89 and Sterlite was up 0.16 percent at USD 6.27.
Ritesh Shah of Espirito Santo Securities is positive on Sesa Sterlite and sets a fair value ranging between Rs 180-220.
The market is off day's highs, though it is managing to hold the green line for the third day in a row. The Nifty breached 5500 on the upside in early trade but has come off marginally. The Sensex is up 75.35 points or 0.41 percent to 18594.79, and the Nifty is at 5488.15, up 16.40 points.
India will report June quarter GDP on Friday, which will indicate how much the economy has slowed. It had recorded a 4.8 percent growth in the previous quarter.
It is a volatile session for the rupee with no clarity form the Fed and tepid global cues. The currency breached the 65 per dollar level in early trade, recovered marginally and then hit a low of 65.56 intra-day. The 10-year bonds were lower following the extended fall in the rupee and the continued bullishness in crude prices.
The market witnesses profit taking after a big gap up opening led by banks and other interest rate sensitives. The Sensex is up 47.54 points or 0.26 percent at 18293.58, and the Nifty is at 5419.65, up 18.20 points or 0.34 percent.