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Saturday, June 13, 2009

Vedanta investing Rs 600 cr in Sesa Goa

Sesa Goa, which on Thursday announced it was buying the mining assets of the Dempo group for Rs 1,750 crore, will raise Rs 600 crore through a preferential allotment of shares to Vedanta Resources plc, its parent company.

Vedanta, owned by NRI entrepreneur Mr Anil Agarwal, will subscribe to 3.32 crore equity shares of Sesa Goa increasing its stake from 53.1 per cent to 55 per cent. The transaction is expected to be completed by July.

Sesa Goa’s shares were up six per cent at Rs 203 on the BSE on Friday.

Separately, Vedanta said it has raised $1.25 billion (about Rs 6,000 crore) through an issue of convertible bonds.

“If the preferential allotment is made at a discount to the current market price (of Sesa Goa) then it will have a negative impact on earnings per share. However, the opportunity to tap new markets and bargain better prices for iron ore shipments will improve both revenue and profitability,” said an analyst.

source: BL

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