The trading day opened with Vedanta’s shares slipping by almost one percent on March 13, following a directive from SEBI regarding payment to Cairn UK Holdings Limited (CUHL). SEBI instructed Vedanta to disburse Rs 77.62 crore to CUHL along with a simple interest of 18 percent per annum, citing delays in dividend payment.
As of 9:20 am, Vedanta’s stock was observed trading at Rs 268.15, reflecting the market’s response to the SEBI order.
In a filing made after market hours, Vedanta Limited disclosed that the Securities and Exchange Board of India (SEBI) has instructed several key executives and directors to refrain from accessing the securities market for varying periods. SEBI’s directive applies to Vedanta’s Chairman and Managing Director (CMD) Navin Agarwal, Whole-time Director Tarun Jain, Whole-time Director and Chief Executive Officer (CEO) Thomas Albanese, and Whole-time Director and Chief Financial Officer (CFO) GR Arun Kumar, with a two-month restriction. Additionally, Non-Executive Director Priya Agarwal and Independent Directors K Venkataramanan, Lalita D Gupte, Aman Mehta, Ravi Kant, and Edward T Story are barred from market access for one month.
Vedanta further stated in its filing that it is pursuing appropriate legal measures in response to SEBI’s actions and anticipates no significant financial or material repercussions from the regulatory decision.
Vedanta Ltd Faces a Downward Trend as Stock Slides Over 3% Since the Start of 2024; Q3FY24 Report Reveals an 18% Year-on-Year Decline in Net Profit, Amounting to Rs 2,013 Crore for Vedanta India.
Comparing to the corresponding quarter of the previous year where the company recorded a profit of Rs 2,464 crore, Vedanta Ltd witnessed a significant downturn with a reported net profit of Rs 2,013 crore in Q3FY24. This marks a stark contrast to the previous fiscal year, which concluded with a loss of Rs 1,783 crore. However, amidst this profitability challenge, the company managed to achieve a modest revenue increase, rising by 3.8 percent to Rs 34,968 crore.
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