Life Insurance Corporation of India has disclosed a substantial reduction in its shareholding in Vedanta Ltd, filing the mandatory disclosure under SEBI regulations for entities holding more than 5% stake in listed companies. The state-owned insurance giant reduced its position through market sales spanning nearly nine years.

Shareholding Reduction Details

LIC's stake reduction represents a significant divestment from the mining and metals company. The transaction details show a systematic reduction in the insurer's exposure to Vedanta shares.

Transaction Timeline and Method

The disclosure reveals that LIC conducted the share sale through market transactions over an extended period from April 26, 2017 to January 14, 2026. The insurance corporation filed the regulatory disclosure on January 16, 2026, as required under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Regulatory Compliance

LIC submitted the disclosure to both major stock exchanges where Vedanta shares are listed - NSE and BSE. The filing confirms that LIC does not belong to the promoter or promoter group of Vedanta Ltd. Key compliance details include:

• Transaction Mode: Market sale
• Regulatory Framework: SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
• LIC PAN: AAACL0582H
• Filing Date: January 16, 2026

Market Impact

The share sale of 78.5 million shares represents a significant volume transaction in Vedanta's equity. Despite the substantial divestment by LIC, Vedanta's total equity share capital remained unchanged at ₹391,03,88,057, indicating the transactions occurred in the secondary market without affecting the company's capital structure.

LIC's reduced holding of 4.88% still represents a substantial institutional investment in the mining company, maintaining the insurer's position as a significant stakeholder while complying with its portfolio management requirements.

Vedanta shares experienced a pause in their recent rally on Thursday, declining 1.69% on the NSE to hit an intraday low of ₹664.35. This marked the end of a strong four-day winning streak that had delivered impressive gains of nearly 12% over the past trading sessions, with the stock settling at ₹675.70 in the previous session.

Market Performance and Trading Activity

The stock demonstrated significant volatility during Thursday's session, trading in a wide range between ₹664.30 and ₹678.60. Despite the decline, Vedanta remains positioned close to its 52-week high of ₹679.40, reflecting the strength of its recent performance.

Trading volumes remained elevated compared to recent averages, indicating continued investor interest despite the profit-taking activity that emerged after the stock's strong run-up.

Sector-Wide Weakness Impacts Performance

The decline in Vedanta shares coincided with broader weakness across the metal sector. The Nifty Metal index traded lower by 0.40%, creating headwinds for metal stocks across the board.

The synchronized decline across major metal stocks suggests sector-specific factors influenced trading sentiment during the session.

Recent Corporate Development

Adding to the company's news flow, Vedanta recently informed exchanges about receiving an ESG rating of 67, categorized as "Strong," from SEBI-registered ESG Rating Provider ESGRisk.ai. The company clarified that this rating was issued independently without any engagement from Vedanta for the evaluation process.

Technical Position

Despite Thursday's decline, Vedanta's stock remains well-positioned technically after its recent strong performance. The four-day rally of nearly 12% had brought the stock within striking distance of its 52-week high, though profit-taking has now emerged as investors book gains from the recent surge.