Vedanta slips down almost 2.5%

Vedanta slipped down almost 2.5% to the intra day low point at Rs.313.80. Its 52-week high and low is at Rs.355.70 and Rs.217.95 respectively.

The stock price tumbled down on news that the Supreme Court has scrapped the licenses to all the 88 mines in the state.

The Court has ruled that all mining operators in the state would have to stop operations by March 15. Fresh mining leases would only be given after the government has completed a fresh round of auctions as well as completed the necessary processes of obtaining environmental clearance.

More of a psychological blow than a major material impact on Vedanta as is has additional mines in Karnataka and iron ore per se contributes only around 4% to the company’s revenue and some 3% to operating profit.