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The Vedanta Group may buy additional shares in some of the recently listed group companies

ICICIdirect Research 12 Aug 2026 DISCLAIMER

News: As per media sources, promoters of the Vedanta Group may buy additional shares in some of the recently listed group companies, particularly the Oil & Gas and Iron & Steel businesses, through open-market purchases. Under SEBI rules, promoters can increase their stake by up to 5% in a year through the creeping acquisition route. The promoters may raise around ₹2,000-3,000 crore to fund these purchases, potentially by pledging or selling shares of Vedanta Ltd. or Vedanta Aluminium.  

View: We view the development as negative, primarily due to the potential funding requirement and possible increase in share pledging at the group level. If promoters use shares of Vedanta Ltd. or Vedanta Aluminium as collateral or sell them to raise funds, it could create a share overhang and weigh on investor sentiment. While higher promoter ownership in the newly listed businesses could be positive from a long-term alignment perspective, the proposed funding mechanism remains a key concern. Hence, we see the development as sentimentally negative until there is greater clarity on the quantum and mode of funding. We await confirmation from the management.

Impact: Negative

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