SHORT TERM STOCK OPTION : Buy VEDANTA AUGUST

• August 11, 2021
• By Ruhul AMIN Mondal
• 141 Views 701 comments

Vedanta Limited is a mining company based in India, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha. Vedanta (then called Sterlite industries) began in the 1980s, as the founder D.P.Agarwal founded Sterlite Industries (India) Limited in Mumbai and began to buy mining concessions in different states of India. He was soon joined by his two sons, Navin Agarwal and Sunil Agarwal, both of who currently run the company. In 1992, they established Volcan investments in Nassau (Bahamas) as the main holding company for their mines.^[5] D.P.Agarwal had a small aluminium conductor business in Patna. His son Anil Agarwal had come to Mumbai to expand their business.^[6] In the 1990s, as the Indian government began to sell off sick (non-performing) companies, Sterlite began to bid for them. They were able to bid successfully for BALCO and Hindustan Zinc Limited, both bankrupt companies that had been closed down for 4 years. Meanwhile, in January 1993, D. P. Agarwal founded Twinstar Holdings Limited in Mauritius, which was mostly owned by Volcan investments. On 26 May 2002, the Enforcement Directorate filed a show cause notice with Sterlite, relating to the six-year period between 1993 and 1999 when Twinstar acquired the shares of Sterlite and various investment companies – such as Dwarka Prasad Anil Kumar Investments Private Limited, Pravin Navin Investment & Trading Private Limited and Sterlite Copper Rolling Mills Private Limited – which, in turn, had made substantial investments in Sterlite and another group company, Madras Aluminium Company Limited (MALCO) after obtaining permission from the Reserve Bank of India (RBI). On 29 April 1999, many of these investment companies were liquidated and all the shares of Sterlite came back to Twinstar’s possession. Twinstar became the 100% owner of shares in these investment companies and received government approvals from the RBI as well as the Foreign Investment Promotion Board (FIPB).^[5] On 8 December 1999, officials of the Income Tax department raided the offices of Sterlite located at Dhanraj Mahal, Apollo Bunder and Tulsiani Chambers, Mumbai, and seized many documents. The IT department then decided to engage the services of ED officials as it appeared that there could have been a violation of the country’s foreign exchange laws. After analyzing these documents, the ED inferred that Twinstar was incorporated with the sole intention of acquiring an interest in Sterlite. The Directorate alleged that the Agarwals, before liquidating the shares of the investment companies mentioned, had written off loans worth 230 million and made an agreement to gift their overseas corporate body, Twinstar, a sum of Rs 338 million including shares of Sterlite worth Rs 72 million. Between 1993 and 1999, Sterlite and its investment companies allegedly brought in Rs 2.08 billion to India through Twinstar to subscribe to the shares of Sterlite and make investments in the company

Script Name –VEDL( Vedanta Limited )

Expire Date-AUGUST

Strike Price-330 CE

Buy Price –7.5-8

Profit Target-16

Stop Loss-3.80

Call Duration-CARRY FORWARD

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