Vedanta Ltd. shares touched a 52-week high on Thursday (4th April). The stock reached a high of Rs. 312.50, rising 4.27% intraday in the current session. The market cap of the firm reached 1.15 lakh crores. The stock ended at Rs. 310.25 – 3.92% higher on BSE.
The stock gained 6.38% in the past 12 months. Total traded volumes were 2.6 times the 30-day average. The relative strength index was at 69.62.
Why did Vedanta’s stock rise?
There are many factors responsible for the record rise:
1. Mining in Goa’s Bicholim block starts
It is being noted that the stocks surged after the firm informed on Thursday about the commencement of their mining operations at Bicholim mineral block in Goa. This mining process was halted in 2018 after the Supreme Court imposed a blanket ban on mining quashing 88 mining leases.
“Heralding a new era of inclusive development, Vedanta Sesa Goa commenced mining operations at Bicholim Mineral Block- Block 1 in the state of Goa,” the company said in a statement.
Vedanta was the highest bidder with 63.5% revenue for Bicholim Mining Block.
2. Issue of debentures
The rise in stocks also comes amid the Vedanta Limited’s notification on April 4th that its board of directors approved funding up to Rs. 2500 crores through private placements of non-convertible debentures.
“The Committee of Directors at its meeting held on April 4, 2024, considered and approved for raising, on a private placement basis, up to 2,50,000 seniors, secured, rated, listed, redeemable, non-convertible debentures (NCDs) of a face value of 1,00,000 each, aggregating up to ₹2,500 Crore in one or more tranche,” the business stated.
3. High Production
The total aluminium production increased 4% to 5,89,000 tonnes in the 4th quarter of FY24. The firm highlighted the 18% increase in alumina production at its Lanjigarh refinery unit in Odisha.
Pig Iron production rose by 6% year-on-year to 198,000 tonnes.
Thus, investors are in high anticipation to make gains from the surge.