Back-To-Back 5 Upper Circuits, 28% Gain, Premji Invest Buying: Why Investors Are Chasing Vedanta Iron & Steel?

Vedanta Iron & Steel Share Price Today: Shares of Vedanta Iron & Steel Limited ended nearly 5% higher on Monday, June 22, extending their winning streak to a fifth consecutive session. The metal stock has witnessed heightened investor interest since its listing following the Vedanta demerger last week.

Vedanta Iron & Steel share price ended 4.89% higher at Rs 26.8 per share with a market capitalisation of Rs 10,479.84 crore on BSE on Monday, June 22. The stock had hit upper circuit for the fifth trading session reflecting heightened investors enthusiasm around the stock.

Vedanta Iron & Steel Stock Hits Upper Circuit For 5th Straight Session

Vedanta Iron & Steel share price has been locked in the upper circuit for five consecutive trading sessions since its listing, rallying nearly 28% from its listing price of Rs 20 per share. The stock hit successive upper circuits of Rs 22.11 on June 16, Rs 23.21 on June 17, Rs 24.37 on June 18, and Rs 25.57 on June 19, before extending its winning streak to a fifth session with an upper circuit and fresh all time high of Rs 26.80 per share on the BSE on Monday, June 22.

Vedanta Iron & Steel Share Price Rally Amid Premki Invest Buying

The rally in Vedanta Iron & Steel share price has come days after Premji Invest owned-PI Opportunities AIF acquired nearly Rs 102 crore worth shares in Vedanta Iron and Steel. The acquisition was carried out via open market transactions on June 15. As per Moneycontrol report, PI Opportunities AIF V LLP, the investment vehicle of Premji Invest is ultimately owned by Azim Premji and it bought around 4.83 crore equity shares in Vedanta Iron and Steel for Rs 101.67 crore. Vedanta Iron shares were bought at a price of Rs 21.02 per share.

Why Investors Are Chasing Vedanta Iron & Steel?

The rally in Vedanta Iron & Steel share price came after the demergered entity listed sharply below its base price. The iron and steel arm of Vedanta, listed around 83% lower from its base price of Rs 121 per share.

“While newly separated companies usually face heavy selling pressure, VISL has done the exact opposite. Debuting at ₹20, the stock has hit its maximum daily profit limit of 5% for several days in a row, surging nearly 28% to trade around ₹26.84 and pushing its total market value close to the ₹10,000 crore milestone,” noted Nishchal Jain, Quant Researcher, Share.Market by PhonePe.

Investors enthusiasm around the stock indicates its strong potential to benefit from Vedanta’s iron and ore business.

“This rally was sparked by big backing from billionaire Azim Premji’s investment firm, Premji Invest, which bought a massive block of shares worth over ₹101 crore. This stamp of approval immediately boosted everyday investor confidence. Furthermore, special stock market rules required buyers to take full delivery of their shares instead of doing risky, same-day trading. This created a situation where a massive flood of buy orders met a shortage of available shares, driving the price straight up,” explained Jain.

Vedanta Iron & Steel Share Price Outlook

Given the current enthusiasm around Vedanta IRon & Steel stock, experts remain confident about its near-term outlook. “Looking ahead, market experts are highly positive, predicting the stock could reach Rs 30 to Rs 32 in the near future, with its initial big-investor price of Rs 21 serving as a strong safety net. While buyers should keep an eye on general ups and downs in the steel market and how much debt the company carries, the general advice for investors is to steadily buy the stock whenever the price dips, making it an excellent long-term bet on India’s industrial growth,” added Jain.