With the closing of the market on 13 September, Vedanta’s market share price was around Rs. 294.7. But the shares had taken a sharp turn in the company’s favour and the prices are now rated at almost Rs. 305. The shares rose by nearly 6.14% as Sensex slides. Speculations have been made over the sudden rise in the share prices of the company.
Vedanta is a multinational mining company whose operations are spread across many states in India. The company had recently shown interest in shifting its operations to Gujarat and out of Maharashtra as it had moved into a partnership with Foxconn. Pune’s business community has expressed shock at the Vedanta-Foxconn joint venture’s choice of Gujarat over the previously chosen Chakan-Talegaon MIDC in Pune for its display production and semiconductor facilities.
Both companies have made a joint investment of over Rs. 1.54 lakh crores and are expected to set up their biggest unit for manufacturing in Gujarat. The exit of Vedanta from Maharashtra has also taken a political turn as critics of the Eknath Shinde government have taken up the opportunity claiming that the government has failed in retaining a huge manufacturing company and holding back the manufacturers. The question of the lack of employment has also been raised against the government.
In this current venture, the mining giant is expected to retain 60% of the company stakes while the rest 40 will go to the Taiwanese semiconductor manufacturer. Anil Agarwal, Chairman of Vedanta said that the partnership will strengthen India’s economic growth and will make India “#Atmanirbhar”.