BlackRock, ADIA, domestic funds hike stake in Vedanta

NEW DELHI: The world’s largest asset manager BlackRock, as well as the Abu Dhabi Investment Authority, along with domestic mutual funds like ICICI Mutual Fund and Nippon India Mutual Fund have increased their holdings in Vedanta by almost 2 per cent during the last four months, said market participants.

At the same time, foreign institutional investors (FIIs) increased their stake in the conglomerate by 1.2 per cent during the corresponding period, they added.

The recent rally in Vedanta share price on the back of demerger plans, deleveraging and soaring metal prices has led to a bullish call by domestic and international funds.

“Vedanta has witnessed significant buying interest. Many foreign and domestic investors have increased their stake on the back of strong fundamentals,’’ according to a dealer in a foreign brokerage house.

This comes at a time when the Vedanta stock has surged almost 30 per cent, adding about $3 billion to its market capitalization since December.

Shares of Vedanta Limited hit a 52-week high of Rs 322 on April 5, closing up more than 3 per cent during the trading session, and more than 15% in the last five trading sessions (April 1 to April 5).

This is in line with the strength in global metal prices that are soaring due to multiple factors. Strong industrial data from China indicated an expansion in manufacturing activity for the first time in six months.

As China is the largest consumer of multiple metals, the strong economic data has led to a rally in metal stocks including Vedanta, a leading producer and supplier of iron ore, steel, copper and aluminium.

The rally is a reflection of the overall business potential and EBITDA projections of the company.