BENGALURU, June 26 Reuters Vedanta Resources will sell a 2.6 stake in Indian metalstooil firm Vedanta to a group of institutional investors, the former said in a statement on Wednesday.

The move marks an aboutturn from a week ago when Vedanta Chairman Anil Agarwal said there were no plans for a stake sale by the company39;s controlling shareholders.

Vedanta Resources will sell the stake through its unit Finsider International, which held a 2.63 stake in Mumbailisted Vedanta as of Marchend, according to exchange data.

The firm did not disclose the financial details of the deal or the names of the investors.

Vedanta Resources, whose debt stood at 6 billion as of March 31, has been grappling with a host of rating downgrades since last year as analysts flagged liquidity issues and high default risk.

On completing the stake sale, the firm would have reduced its debt by 650 million so far in fiscal 2025, the statement said.

Vedanta39;s shares fell more than 6 in early trade and were last down 2.7, with about 83 million shares changing hands through block deals at a discount to the previous closing price of 454.05 rupees.

Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema

Source Reuters