Vedanta slips after Foxconn pulls out of semiconductor JV

Vedanta fell over 2 per cent on Tuesday, a day after Taiwan's Foxconn said it withdrew from a $19.5 billion semiconductor joint venture with the metals-to-oil conglomerate.

The companies partnered last year to set up semiconductor and display production plants in Gujarat. Concerns about incentive approval delays by India's government had contributed to Foxconn's decision to pull out of the venture, a source familiar with the matter told Reuters on Monday.

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S&P Global Ratings said that Vedanta's planned semiconductor business does not increase immediate liquidity pressure, adding that it believes there is no immediate sizable funding commitment for the semiconductor project, pending government approval.

Shares of Vedanta fell as much as 2.6 per cent to Rs 275 apiece, after having already fallen 24.1 per cent, as of last close, since the partnership was announced in February last year.