Vedanta Falls Most In Months As Plan For Semiconductor Plant Unclear
Vedanta says its family trust Volcan Investments will build the semiconductor plant in Gujarat with Foxconn.
Shares of Vedanta Ltd. fell the most in three months after the company clarified that the semiconductor plant to be undertaken in partnership with Foxconn will be undertaken by its holding company.
In a clarification to the exchanges, the Anil Agrawal-led mining conglomerate said the "proposed business of manufacturing semiconductors is not under Vedanta Ltd. and we understand that it will be undertaken by the ultimate holding company of Vedanta Ltd., Volcan Investments Ltd."
Vedanta and Foxconn had signed an agreement with the government of Gujarat for investing Rs 1.54 lakh crore in a semiconductor plant. The Indian company is to own 60% stake in the joint venture company, while Taiwan's Foxconn will own 40%.
The stock tanked as much as 8.6% on Friday after the clarification. That's the the most since June 20. Trading volume was 11 times the average in early trade.
It closed 7.4% lower at Rs 290.75 apiece.
The stock snapped a six-session gaining streak. It had gained 20% only in the last four sessions.