Finsider International, a promoter group entity, has divested a 1.8% stake in Indian mining company Vedanta for around $210m through the open market, reported the Economic Times.

The transaction involved the sale of 65,518,600 shares at $0.32 apiece.

The shares were sold at a discount, fetching Rs1,737 crore ($210m) in the open market, according to bulk deals data.

This move by the promoter entity comes as part of a broader strategy to raise capital.

As of the end of December 2023, Finsider International's holding in Vedanta was reported at 4.4%, while the cumulative stake of promoter and group entities stood at 63.71%.

The ETNow news channel cited sources stating that the promoter's decision to sell a portion of its stake is aimed at generating funds to repay debt.

The channel earlier reported ongoing discussions between the promoter and GQG Partners regarding a potential sale of shares valued at $1bn.

However, the identity of the buyers in the bulk deal has not been disclosed by the exchange data.

Vedanta's consolidated net debt as of December 2023 was $7.5bn.

In a related development, Vedanta Resources, the parent company, recently announced an upfront payment of $779m to bondholders, marking the completion of a repayment under its debt restructuring plan.

This follows the consent received earlier this year to extend the maturities of $3.2bn in bonds to 2029.

Last year, the Economic Times reported that Indian zinc producer Hindustan Zinc’s plan to acquire certain assets from Vedanta Group was shelved, as it failed to garner shareholders’ support.