Thread by @BeatTheStreet10

Investing or Trading in #Vedanta is not just about handling the volatility of commodity price its also about handling or understanding promoters and their personal vision

Never Ending Corporate Governance Issues and Restructuring News

#hindustanzinc
#hzl

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In last 1 year, following events took place

1. Failed Delisting
2. Successful Delisting of London based Promoter Co
3. Earlier they merged Cairn Biz with Vedanta But now they want to demerge the biz

4. Not passing full dividend received from Hind Zinc
5. Now Promoter wants to raise through open market ( so they get more HZL dividend and can pay off their debt)

6. SEBI and SC are investigating their companies and dealings
7. NCLT telling banks why they sold Videocon at near to zero value to Vedanta Promoters
8.Lot of deposits and loan dealings between group companies & promoters.

So all these events ars promoter friendly and not investor friendly atleast not for retail investors.

In anycase promoters knows much better and ahead of anything whether its commodity price or any price sensitive info.

We like their biz alot which is also evident from Promoter Behavior

But

We dont like corporate governance. Which is very important for investing

Hence avoid.

9. Promoter raise money to buy shares by pledging the shares they are going to buy from loan.

Vedanta promoters raise ₹6,000 cr by pledging shares

m.economictimes.com/markets/stocks…

10 .

24/11/21 : Vedanta Promoter Buys the stake (Stock was up 5% post that)

16/12/21 : Vedanta Sold the stake ( stock down 7%)

Retailers Trapped , Promoters are busy in trading their own shares rather than running the business

11.

#Vedanta Accounts, UK Sinha Reappointment Fail To Get Institutional Investor Support

Read more at: bloombergquint.com/business/vedan…

12. Few days ago Vedanta Indian Unit was considering now same Vedanta is considering merger with holding company Vedanta Resources which has huge debt of $11.5 Bn.

Never ending / no clear path of corporate restructuring

bloomberg.com/news/articles/…

13. #Vedanta now scraps corporate restructuring / demerger plan.

The most "confused corporate" ever.

bloombergquint.com/business/vedan…