Vedanta shares slip up to 12% after advertisement for auction of its closed copper plant in Tamil Nadu
Vedanta has invited Expression of Interest (EoI) for its Tuticorin-based smelter which has been closed since mid-2018 following a state government order.
Shares of the company fell sharply on Monday after news of multinational mining company Vedanta Ltd selling its Sterlite Copper plant in Tuticorin. Vedanta's share price fell over 12 per cent on June 20 after the company sold its copper plant in Tamil Nadu.
The last date for submission of EOI is July 4 and the company in association with Axis Capital has also invited bids for its plant. Copper plant as well as oxygen generation facility and residential houses have also been made part of the sale offer. According to the company's advertisement, the plant had to face shutdown due to alleged violation of environmental norms.
Following this advertisement issued by the company, shares of Vedanta fell over 12 per cent to Rs 232.30 before trading at Rs 233.10 at 12 noon on Monday. The stock had closed at Rs 263.65 on Friday. So far, the firm's stock has declined 31.69 per cent since the beginning of the year and 7.48 per cent in one year. Ten promoters of the company held 69.69 per cent stake in the firm and 7.43 lakh public shareholders held 30.08 per cent as on the quarter ended March 2022.
Vedanta's Tuticorin plant has been shut for over four years as it faced protests over alleged violation of environmental norms. Vedanta's Sterlite Copper accounted for 40 per cent of India's copper production before the closure. At the time of closure, it employed 5,000 people directly, and another 25,000 indirectly.