"The demerger of verticals in Vedanta will provide an opportunity for lenders to take control of these verticals and unlock their values. This could include selling some of the verticals to satisfy creditors. Choksey also suggests that the restructuring and demerger into six separate listed entities will simplify the group's structure and make it easier to sell off businesses and attract specific investors. The standout entity is expected to be Hindustan Zinc, followed by Cairns, aluminium, and the rest of the businesses."

Major ports in India, including Visakhapatnam port, are transitioning to a landlord port model, where private players take over the operational aspects of the business while the ports act as regulators and landlords. This shift towards public-private partnerships (PPP) is aimed at increasing efficiency and reducing costs. Currently, six private companies control eight out of 29 berths at Visakhapatnam port, contributing 60% of the total throughput.

Indian conglomerate Vedanta Resources is facing increased risk around its upcoming debt repayments, leading to a downgrade by Moody's Investors Services. The company is struggling to raise funds to cover its debt obligations, including $3.2 billion in bonds maturing between 2024 and 2025. Moody's warned of a further downgrade if the company fails to make progress on funding arrangements.

Mumbai-listed Vedanta, which produces copper, aluminium, iron ore and crude oil, and is a subsidiary of the London-based Vedanta Resources (VRL), said the exercise was aimed at building a simplified corporate structure that would appeal to focused investors.

Vedanta Ltd, the Indian subsidiary of Vedanta Resources, has raised ₹2,500 crore through non-convertible debentures with an interest rate of 12%. The funds will be used for capital expenditure or loan repayment. Vedanta Resources, the parent company, has been downgraded by S&P Global Ratings due to debt issues and a funding gap of $600 million.

As of June 2023 end, promoter group i.e. Vedanta Resources held 68.11 percent in Vedanta Limited or 253 crore shares. This entire holding is pledged with lenders

In a conference call following the announcement of demerger, the company’s management spoke about the reason for the demerger, the divided policy and debt allocation for the demerged entities

They believe that the company is highly likely to take a "distressed" liability management exercise to manage a large bond maturity in January 2024

Agarwal, who is counted among India’s richest, had a humble beginning. His grit and mettle might have taken him places now, but the meek Patna boy who could only speak two words in English – “yes” and “no” -- had started out as a scrap dealer in the 1970s.

The rate is sharply higher than what the company had paid for a 15-month bond issue in December, when it had raised 8 billion rupees and the coupon was linked to 91-day Treasury bill yield, which then worked out to around 8.79%.

Chairman Anil Agarwal said last month Vedanta will consider separately listing all or some of its businesses, in contrast to a failed attempt in 2020 to delist the company to speed up the process of simplifying its corporate structure

A total of 307,944 shares changed hands on the counter till 10:00AM (IST)

Rupak De, Senior Technical analyst at LKP Securities, said, "Nifty has experienced a significant correction as it was unable to maintain levels above 19,750. In the daily timeframe, the most recent candle has engulfed the bodies of the preceding few days' candles, which suggests a negative sentiment. The prevailing sentiment continues to favor selling during rallies. Looking ahead, the Nifty may decline towards 19,250, with immediate support situated at 19,450. Resistance is positioned at the higher end at 19,600."

While the selling in Adani Group companies and Vedanta was meant to raise cash to manage debt, HDFC Life and CIE India saw promoter entities offloading stake for strategic reasons.

“Order inflow continues to remain by and large intact, no real big surprises, and TCS in particular has remained quite resilient over the last few weeks.Purely from a valuation perspective and the fact that there is going to be a rebound in the IT spend over the next one to two quarters, both TCS and HCL Tech are looking quite attractive at current prices and valuations.”

On the technical charts, the 200-day moving average of the stock stood at Rs 280.33.

Vedanta Chairman Anil Agarwal mentioned last month the possibility of separately listing some or all its businesses, spanning metals, mining, and oil and gas.

Vedanta Ltd. is reportedly considering a restructuring plan that would involve spinning off its businesses into separate listed entities. The move is aimed at helping Anil Agarwal, the tycoon behind the company, manage its debt load. The businesses that could be separately listed include aluminum, oil and gas, iron ore, and steel.

By ending 52 points higher, Nifty on Wednesday formed a bullish reversal pattern near the 50-day SMA (simple moving average) which indicated a strong possibility of a fresh uptrend rally from the current levels