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Business News/ Markets / Stock Markets/  Vedanta share price scales 52-week high: 3 key reasons leading to the gains for the stock

Vedanta share price scales 52-week high: 3 key reasons leading to the gains for the stock

Stock Market Today: Vedanta's share price, with gains of 4.5% in the morning trades, rose to a 52-week high. The stock has gained more than 10% in last five trading sessions. Here are 3 key reasons that are fueling the gains for the stock

Vedanta share price with gains of 4.5% scaled 52-week highs in the morning trades on Thursday (REUTERS)Premium
Vedanta share price with gains of 4.5% scaled 52-week highs in the morning trades on Thursday (REUTERS)

Vedanta's share price, with gains of more than 4.5%, scaled a 52-week high in the morning trades on Thursday. The stock has gained more than 10% in the last five trading sessions. 

Vedanta Aluminum, a key aluminium manufacturer in India, announced the expansion of its alumina capacities after market hours on Wednesday. In its release, Vedanta highlighted that the expansion is a significant step in its continuous growth strategy to rank among the top three worldwide producers with a capacity of 3 million tonnes per annum (MTPA) for aluminium production.

Alumina capacity expansion to improve profitability

Vedanta announced the successful commissioning of a new 1.5 MTPA expansion at its top-notch alumina refinery in Lanjigarh, Odisha. This expansion, part of its new 3 MTPA facility, will help increase the Lanjigarh refinery's total nameplate capacity from the current 2 MTPA to 5 MTPA. 

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The expansion of alumina capacity is an important step by Vedanta towards achieving complete vertical integration. This development will help Vedanta see improved profitability. In FY24, Vedanta produced 2.37 million tonnes of aluminium, which it highlighted was more than half of India’s aluminium. 

John Slaven, CEO of Vedanta Aluminium, in a statement, said, “We are delighted to commission the expanded capacity, which strengthens our raw material security and reduces costs for our Jharsuguda and BALCO aluminium smelters. It is a significant step towards 100% vertical integration and strongly positions us for sustainable growth within the global aluminium market."

Positive cues from China, rising LME Aluminium prices

The sentiments for aluminium manufacturers are already upbeat. Some positive cues from China are leading to expectations of an uptick in demand from the world's largest consumer of commodities. The aluminium prices on the London Metal Exchange (LME) have also seen some improvement. From less than $2,200 a tonne a month back, the aluminium spot prices on the LME have crossed $2,300 a tonne, trading close to $2,338 a tonne.

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Vedanta considering fundraising

Vedanta has proposed to hold a meeting of its duly constituted Committee of Directors on Thursday, April 4, 2024, to discuss the proposal for the issuance of Non-Convertible Debentures on a private placement basis.

Vedanta, in its statement, highlighted that the meeting is part of its regular financing and refinancing carried out in the ordinary course of business.

Vedanta also said that the aforementioned announcement is in accordance with the resolution adopted by the Board of Directors during its meeting on March 21, 2024. 
















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Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 04 Apr 2024, 10:50 AM IST
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