Vedanta shares plunge after S&P trims parent co's outlook

Billionaire Anil Agarwal-led Vedanta Ltd’s shares plunged 9% in intraday trade to ₹247.60 apiece on exchanges after S&P Global Ratings downgraded the parent firm Vedanta Resources Ltd’s credit outlook from stable to negative on Thursday when Twin Star Holdings Ltd, promoter of Vedanta, sold 15.4 crore shares worth ₹3,983.1 crore in the company to raise funds for repaying dues.

- Mayur Bhalerao

While marquee investors including Societe Generale and Copthall Mauritius Investment Ltd bought 2.94 crore and 8.48 crore Vedanta shares from Twin Star at ₹258.5 apiece respectively, in a statement put out in Singapore, S&P Global Ratings downgraded Vedanta Resources citing increased funding risks.

The rating agency has affirmed ‘B-’ long-term issuer credit rating for the London-based parent firm.

This rating indicates a “relatively higher credit risk", said S&P Global, while affirming its ‘B-’ long-term issue rating for the senior unsecured debts of Vedanta Resources.