Vedanta share price: Chairman buys 1.7 million shares
iNVEZZ.com, Thursday, December 19: Vedanta Resources Plc (LON:VED) has announced that its Chairman Anil Agarwal has acquired about 1.7 million shares in the London-based metals and mining company.
According to a statement released after yesterday’s market close, the Indian billionaire bought 186,050 shares at £7.93, 256,615 shares at £7.64, 666,603 shares at £7.92 and 625,140 shares at £7.87. The transactions were executed during the period 13-18 December.
***Vedanta share price ahead of FTSE 100 reshuffle***
The latest quarterly review of FTSE 100 revealed last week that Vedanta will drop out of Britain’s blue-chip elite underlining the mining sector’s shrinking influence on the index (Mining round-up: Vedanta to lose FTSE 100 place to Royal Mail).
The India-focused group is the latest foreign mining company to be ejected from the FTSE 100. Miners have had a tough year and Vedanta’s shares have fallen over 30 percent since the index’s September review, leading to the company’s demotion to the second-tier FTSE 250.
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The index committee made its decision after the market closed on December 11 and it will take effect from the start of trading on Monday, December 23. Speciality chemicals group Croda International (LON:CRDA) will also be removed from the list of 100 leading UK shares. The two companies will be replaced by recently-privatised Royal Mail (LON:RMG) and industrial equipment rental firm Ashtead (LON:AHT). Newly-listed attractions operator Merlin Entertainments (LON:MERL) just missed out on joining the blue-chip index and will be included in the FTSE 250 instead.
Since the announcement last week, Vedanta’s share price has fallen by over four percent, extending the stock’s one-month decline to almost 17 percent.
On Friday, equity researchers at JPMorgan Chase & Co. lowered their price target on Vedanta’s shares from 1,360p to 1,130p and reaffirmed their ‘overweight’ rating on the stock. According to AnalystRatingsNetwork data, currently, one research analyst has a ‘sell’ rating on Vedanta, nine have it as a ‘hold’ and seven call it a ‘buy’. The stock’s average rating is ‘hold’ with a consensus price target of 1,211.05p.
Vedanta’s share price has gained 1.12 percent so far this morning following Chairman Agarwal’s share purchase.
**As of 08:29 UTC, buy Vedanta shares at 812.00p.**
**As of 08:29 UTC, sell Vedanta shares at 809.50p.**
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