Vedanta Share Price saw a 2% increase to ₹275 per share on the BSE during Wednesday’s opening deals, following a statement by Vedanta Resources Ltd. The statement aims to assuage investor concerns around its financial position.
Vedanta Resources Ltd is owned by billionaire Anil Agarwal and stated that it has sufficient means to meet debt repayment liabilities in the upcoming quarters. Additionally, it has prepaid all of its maturities due until March 2023, which led to a USD 2 billion deleveraging in the past 11 months. Consequently, the company has achieved half of its USD 4 billion 3-year debt reduction commitment in the first year, exceeding its plans for this fiscal year.
Vedanta Share Price had fallen about 14% in the previous session due to the roadblock in its acquisition of state-owned Hindustan Zinc, and the sharp rise in US dollar that led to the depreciation of Vedanta bond yield. However, Vedanta Resources’ statement aims to address the concerns raised by investors and credit rating agencies.
Earlier this month, S&P Global Ratings warned that Vedanta Resources‘ credit ratings may ‘come under pressure’ if it fails to raise $2 billion and/or sell its international zinc assets. The rating agency emphasized that Vedanta Resources’ ability to meet its financial obligations beyond September would depend on its planned $2 billion fundraising as well as the proposed sale of THL Zinc Ltd, a Vedanta Ltd unit that holds zinc assets in Africa.
Vedanta Share Price Rise today thrills investors
In response to S&P’s warning, Vedanta Resources announced that it is in the advanced stages of finalizing a combination of syndicate loans and bilateral bank facilities, totaling $1.75 billion. This announcement was made in a statement on Tuesday.
The Hindustan Zinc deal was announced on January 19, but it is now in doubt after the government-nominated directors on Hindustan Zinc’s board opposed the acquisition. They said in a letter dated February 17 that they would oppose further resolutions related to the deal.
Vedanta Limited, led by billionaire Anil Agarwal, is engaged in the mining and metals segment, involved in zinc-lead-silver, iron ore, steel, copper, aluminum, power, and oil and gas across India, South Africa, and Namibia.
In conclusion, Vedanta Resources Ltd has taken measures to address investor concerns regarding its financial position. The company has prepaid all of its maturities due until March 2023, resulting in a USD 2 billion deleveraging in the past 11 months.
Additionally, Vedanta Resources is in the process of finalizing a combination of syndicate loans and bilateral bank facilities, totaling $1.75 billion. These actions demonstrate the company’s commitment to meeting its financial obligations and reducing its debt burden.