Shares of Vedanta Ltd. gained for the sixth straight day after it won a coal block and announced a tie-up with Foxconn Technology Group for a semiconductor plant in Gujarat.
The Anil Agrawal-led mining conglomerate has been declared as the highest bidder for Ghogharpalli and its dip extension coal block, located in Sundargarh district of Odisha, under Tranche V of commercial coal block auction conducted by Ministry of Coal.
The mine has total reserves of 1,288 million tonnes and an estimated per annum capacity of 20 million tonnes.
On Tuesday, the company announced that it will set up a semiconductor plant with Taiwan's Foxconn in Gujarat with an investment of Rs 1.54 lakh crore.
In a series of tweets on Wednesday night, Chairman Anil Agrawal detailed the process undertaken to select Gujarat for the plant.
"We decided Gujarat few months ago as they met our expectations. But in July meeting with Maharashtra leadership, they made a huge effort to out bid other states with competitive offer. We have to start in one place and based on professional and independent advice, we chose Gujarat," he said.
Vedanta-Foxconn has been professionally assessing site for a multi-billion dollar investment. This is a scientific and financial process which takes several years. We started this about 2 years ago. (1/4)
The shares of the company gained 5% intraday to trade at Rs 320.9 apiece, before closing 2.8% higher on Thursday. The stock has gained nearly 20% over in the last four sessions.
Trading volume is more than nine times the 30-day average. The relative strength index is at 79, suggesting the stock may be overbought.
Of the 17 analysts tracking the company, 13 maintain 'buy', two suggest 'hold' and two recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 4.5%.
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