Vedanta Share Price News: Vedanta has proposed an upfront payment of Rs 4,000 crore, winning the bid of Jai Prakash Associates Limited. The brokerage firm has given a by -rating on this stock and set its target price. Know how far the stock can go ..
Vedanta share buy or sell: On Monday, September 8, there is a decline in Vedanta share price. By 12.30 pm, the stock was trading at Rs 1.73% to Rs 437.80. The reason behind this is the concerns of analysts about the selection of Vedanta in the dialect of Jai Prakash Associates Limited (Jal). Vedanta’s shares have been under constant pressure in the last one year. In the last 6 months, the stock has been down less than 1%, while during a year falling up to 5.38%. Despite this, the brokerage firms are latters on it and have given a big target.
What is Vedanta and Jal Deal?
Anil Aggarwal’s company Vedanta has successfully bid for the debt -ridden Jai Prakash Associates Limited. According to the report, Vedanta has proposed an upfront payment of Rs 4,000 crore on approval from NCLT, while the remaining amount will be given in the next 5–6 years. Vedanta offered the Net Prajant Value (NPV) Rs 12,505 crore in this dialect, leaving behind the Adani Group. Jai Prakash Associates has businesses like real estate, cement, power, hotels and rhodes.
How much debt is on Jal?
Jai Prakash Associates Limited is currently in the Corporate Insolvency Resolution Process (CIRP). On 24 June, resolution professionals invited resolution plans. The process was attended by five bidars Vedanta, Adani, Dalmia, Jindal Power and PNC Infratech, in which Vedanta won as H1 Bidar. Jal’s stock exchange filing stated that the company’s unpaid debt was Rs 55,371.21 crore till August 15.
What do experts have to say on Vedanta and Jal Deal?
Brokerage firm Nuwama Institutional Equities noted that this deal could have negative effects for minority shareholders, even if these assets are beneficial in future. Analysts say that entry in non-core-business at this time is a cause of concern, as priority should be delevezing. The stock’s rating improvement may be limited even after the deal is completed. However, some assets can be monetted quickly, which will reduce the burden on the balance sheet.
Vedanta share price target
Even if there are some concerns about the deal, brokerage firm Nuwama has maintained the ‘Buy’ tag on Vedanta. Brokerage has given a target price of Rs 601 (Vedanta Share Price Target), which shows up to 35% of the possibility. Experts believe that Vedanta’s main focus will be on the core business i.e. power and other assets can be monitored at the right time.
Disclaimer: This article is only for information. Information given in this is not advisable for investment. Investment in the stock market is subject to risks, consult your market expert or financial advice before investing.
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