Vedanta Limited was established Fuelled Rise in 1979. It is an Indian multinational natural resources conglomerate with a portfolio including zinc-lead-silver, iron ore, steel, copper, aluminum, power, nickel, and oil and gas. Vedanta has a significant presence, with operations spanning four continents. It has strategic assets in countries like India, South Africa, and Namibia and has recently expanded into high-growth markets such as the United States, Asia-Pacific, Europe, the Middle East, and Africa.
Regarding sustainability, the company aims to Fuelled Rise reduce carbon emissions to zero by 2050 or sooner. Its stock price rose in April this year and here we will cover why.
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In the last month, the company generated a return Fuelled Rise of over 10%, whereas in the previous year, the return was 56.07%. The dividend yield of this stock is also impressive at 7.13%. Regarding financials, the turnover in the fourth quarter of 2023-24 was Rs 34,937 crores.
After paying for taxes, depreciation, and interest, the net income for the same period was Rs 2,275 crores. Vedanta’s EPS stood at 4. Vedanta is trading around Rs. 440+ as of June 2024.
Three recent events that are driving Vedanta’s share are detailed below. You can also analyze the Vedanta share price chart to understand the price movements.
1. Mining in Goa’s Bicholim Bock
Historically, mining alone contributed to 20% of Goa’s Gross Domestic Product. However, in 2018, the Supreme Court banned all mining activities in the region due to irregularities in license renewal.The Bicholim block, now operational under Vedanta Limited, is the first auctioned mine to resume work since the ban. In 2022, the company successfully placed a bid by offering a 63.55% revenue share for this 485-hectare mineral block.
The market sees this move as a positive sign because Vedanta’s operations are expected to bring a surge in employment opportunities. This will ultimately boost the local economy and contribute to Goa’s GDP.
2. Issuance of Non-convertible Debentures
Vedanta Ltd. recently announced its decision to raise Rs 2,500 crore by issuing NCDs (non-convertible debentures). The company has opted for a private placement approach for this fundraising activity.
The announcements were made during a board meeting held on March 21, 2024.
Remember that NCD issuance is not the first time Vedanta has successfully conducted similar fundraising thrice in the fiscal year 2024. The last one was in December for Rs 3,400 crore.
The current issuance will be part of Vedanta’s ongoing financial strategies, which include regular financing and refinancing activities.
3. Capacity Expansion
On April 4, 2024, Vedanta announced the successful commissioning of a new 1.5 million tonnes per annum (MTPA) expansion at its state-of-the-art alumina refinery in Lanjigarh, Odisha. This expansion has increased the refinery’s production capacity from 2 MTPA to an impressive 3.5 MTPA.
You might not be aware, but Vedanta Aluminium is India’s largest aluminum producer. The company contributes more than half of the country’s output, with a recorded production of 2.37 million tonnes in the fiscal year 2024.
Management believes the expansion will reduce costs for its aluminum smelters in Jharsuguda, Odisha, and BALCO in Chhattisgarh.
Conclusion
Vedanta share price surged because of several key Fuelled Rise factors. The first one is the resumption of mining activities in Goa’s Bicholim Block. Next is the issuance of non-convertible debentures, followed by the successful commissioning of a considerable capacity expansion at its Lanjigarh refinery in Odisha. To invest in stock, open an account with Dhan.
