Why is Vedanta Oil & Gas share falling after listing? What is the reason for 10% fall in two days? Is it just profit booking or a bigger concern? Which company’s shares rose after Vedanta Demerger? Is there an investment opportunity in Vedanta Oil & Gas despite the decline?
Vedanta Shares Today: Listing of a new share in the stock market often brings excitement to investors, but the initial picture looks different with Vedanta Group’s new company Vedanta Oil & Gas. After being listed in the stock market, selling was seen in this stock for the second consecutive day and it reached the lower circuit. The stock has slipped by about 10% in just two trading sessions. In such a situation, the biggest question in the minds of the investors who have received these shares after the demerger is whether this is normal profit booking or can they see more pressure in future?
Why is Vedanta Oil & Gas Share in discussion?
Vedanta Group has recently completed the process of dividing its business into different companies. Under this, Vedanta Oil and Gas has been listed in the stock market as an independent company. This company is associated with the country’s oil and gas business and operates under the brand name ‘Cairn’. It also has large projects in Rajasthan, the east and west coast as well as north-east India. The company has oil and gas blocks spread over thousands of square kilometers.
Why did Vedanta Oil and Gas share fall in two days?
After listing, many investors often book profits by selling the shares they have received. In the market it is called profit booking. Something similar was seen with Vedanta Oil and Gas also. The stock remained under pressure on the first day and reached the lower circuit of 5% on the second day as well. Investors’ concerns have increased due to the continuous decline. However, this is just the initial drop. According to market experts, fluctuations in the initial days of new shares are normal.
Plans of Vedanta Oil and Gas Limited
While on one hand the stock is showing a decline, on the other hand the company seems to be quite aggressive about its future. Vedanta Oil and Gas has announced plans to invest about $5 billion in the next 3 to 5 years. The company aims to increase production to 5 lakh barrels per day. Apart from this, the company is also focusing on shale gas, tight oil, deep-water and other energy projects. That means the company is betting on long-term growth.
What did Anil Aggarwal say?
Vedanta Group Chairman Anil Agarwal said in a recent message to shareholders that Cairn’s business has strengthened significantly in the last few years. According to him, the company has increased its reserves and also strengthened its natural gas portfolio. The company believes that becoming an independent entity will give it the opportunity to expand faster and create more value.
What was the condition of other companies after Vedanta demerger?
The performance of all the new companies of Vedanta was not the same. While selling was seen in Oil & Gas and Aluminum Metal (Vedanta Aluminum Metal), investors showed good buying in Vedanta Iron & Steel. Vedanta Power shares also showed strength. That means the market is currently looking at every business from a different perspective and the preferences of investors are also visible.
Is the fall in Vedanta shares an alarm bell?
According to market experts, the initial decline in any newly listed stock cannot be considered as a direct alarm bell. Many times, after listing, shares remain under pressure for some time and later become stable. Instead of panicking after seeing just two days of decline, investors should also keep an eye on the company’s business, future plans and prospects of the sector. If you have acquired shares of Vedanta Oil & Gas through demerger, then avoid taking hasty decisions. Along with the share performance, it is important to also pay attention to the company’s growth strategy and upcoming quarterly results. Fluctuations are normal after new listings in the market. Therefore, the most important step before investing is to keep in mind your risk appetite and investment period.
Disclaimer: The information given in this article is for informational purposes only and should not be taken as investment advice. Investing in the stock market is subject to risks. Before investing money in any stock, definitely consult your financial advisor or market expert.