Vedanta Lands Manganese Block In Andhra Pradesh Auction – SEBI Analyst Says Revenue Impact Is Years Away

Shares of Vedanta fell on Friday after the company announced it had been declared the preferred bidder for the Punnam Manganese Block in Andhra Pradesh, as investors weighed the long timeline involving further drilling, regulatory approvals, and heavy investment before any commercial output.

Auction Win Details

The manganese block spans 152 hectares and is classified at the G4 reconnaissance stage of exploration. Vedanta secured the status through a live e-auction process under a state tender floated on July 10. 

The company said a composite licence will only be granted once it fulfils several conditions, including submitting a performance bank guarantee, completing other tender requirements, obtaining approvals and clearances from government departments, and signing formal agreements.

Analyst View

SEBI-registered analyst Varunkumar Patel said that manganese is essential for steelmaking and is also gaining importance in certain lithium-ion battery technologies, making the Punnam block strategically valuable, despite its relatively small size. 

At 152 hectares and still at the early G4 reconnaissance stage, he noted the block is unlikely to add meaningfully to Vedanta’s revenues any time soon.

Patel explained that moving toward commercial production will require further rounds of exploration, a series of regulatory approvals, and heavy capital investment, a process that could take several quarters or even years.

Technical View

Patel said Vedanta’s stock was trading around ₹456.5 on Friday, almost flat with its intraday VWAP (volume-weighted average price) of ₹456.56. 

He pegged immediate resistance at ₹465, with a break above opening the way toward ₹480 and possibly the 52-week high zone near ₹525. On the downside, support sits at ₹451 and then at ₹440–₹444. A sustained move below ₹440 on heavy volume would weaken the structure. 

Patel added that the charts suggest the stock is trying to stabilize after recent volatility but has yet to show confirmed momentum, making it a “pause and confirm” setup.

Trading Strategy 

Patel suggested a potential momentum play: wait for a daily close above ₹460 on strong volume before entering, with targets of ₹480 and then ₹520–₹525, while keeping a stop loss near ₹450.

Risks To Watch

The analyst flagged that regulatory headlines, developments around Vedanta’s proposed demerger, changes in metals demand, or any delays in converting the preferred-bidder status into a composite licence could weigh on the stock.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.

Vedanta’s stock has risen 2% so far in 2025.

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