Vedanta Will Reduce Debt By $3 Billion In Three Years

Ashish Kumar Mishra
2 Min Read
Vedanta Company

Vedanta Resources, the promoter unit of billionaire Anil Agarwal’s company Vedanta Limited, is focused on reducing debt. The company will reduce debt by $3 billion in three years. Meanwhile, on Thursday, the fourth day of the week, shares of Vedanta Limited saw a rise. On Thursday, the stock closed at Rs 268.20, up 2%. During trading, the price of this share reached Rs 269.75. The market cap of the company reached Rs 99695 crore.

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Focus On Reducing Debt

Naveen Aggarwal, Vice Chairman of Vedanta Limited (VEDL) and member of the promoter group said that reducing debt (deleverage) is our priority. We will reduce Vedanta Resources’ debt by $3 billion in three years. Vedanta Ltd’s cash flow is estimated at $3.5-4 billion for FY2025, which is enough to secure debt maturities of $1.5 billion.

Now There Is Less Hope Of Considering Stake Sale

At the recent analyst meeting, analysts said $1100 million maturity is due in FY25, and interest payments of about $750 million will be managed through brand fees, asset monetization, and other strategic initiatives. Vedanta’s parent company has several options to meet its debt obligations.

Therefore, we are not actively considering a stake sale soon. We believe that the commencement of development projects will significantly increase the income potential, naturally reducing the cost of capital. The scheme has aroused considerable interest among foreign institutional investors (FIIs), domestic institutional investors (DIIs) and retail investors.

The Company Sold Many Stakes

The company recently sold a significant portion of its shares through its promoter entity, Finsider International. Finsider International sold 1.76% of its shares at an average price of Rs 265 per share, raising Rs 1,737 crore. Let us tell you that the stake of the promoter group has come down to 61.95%.

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By Ashish Kumar Mishra Founder, CEO, and Editor-in-Chief
Ashish is the founder, CEO, and editor-in-chief of our organisation. He has a strong background in journalism and is responsible for setting our organisation's overall direction and strategy and overseeing all editorial operations.