▶ BURDENED BY DEBT, Anil Agarwal-led Vedanta Limited’s decision to split into six different entities has not been entirely unexpected. With repayments of around $1.4 billion due in the next six months, and another $3.5 billion—a combination of bank debt, inter corporate deposits and bonds—due in FY25, the move speaks of the depth of challenges at the conglomerate with a market capitalisation of around $10 billion.
The five new firms—Vedanta Aluminium, Vedanta Power, Vedanta Base Metals, Vedanta Oil & Gas and Vedanta Steel & Ferrous—are expected to be listed by FY25, while Vedanta Ltd already trades on the bourses. The decision has not gone down too well with those tracking the group. A report by Kotak Institutional Equities has termed the vertical split “six steps backward”, adding that the move would…
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Business Today (Digital) - 1 Issue, 29 October 2023