📷 Image Credits: CNBCTV18
Vedanta Resources Ltd., the parent company of the Indian-listed entity Vedanta Ltd., has strongly denied any plans to sell a stake in its subsidiary, Vedanta Ltd. The denial came in response to reports claiming that the promoter group is considering selling a 2.5% stake in Vedanta Ltd to raise around Rs 4,000 crore through block deals.
The news surfaced after a report by the Economic Times on June 21 suggested that Vedanta promoters were mulling over the stake sale. However, a spokesperson for Vedanta Resources stated, “Vedanta Resources strongly denies any plans to sell a stake in Vedanta Limited.”
Vedanta Group Chairman Anil Agarwal, in an exclusive interview with CNBC-TV18, had previously mentioned that there were no current intentions to reduce the stake in the company further. Agarwal reaffirmed that the group holds around 61.5% of Vedanta Ltd., with a 61.95% stake held by promoters as of the March quarter.
The recent increase in share value for Vedanta Ltd. has sparked interest in the market, with the stock closing marginally higher at Rs 469.30. This marks an 82% increase in the stock’s value in 2024, its best performance since 2021 when it doubled in value.
Despite the denial of any stake sale plans, reports suggest that Vedanta Resources is actively looking to reduce debt. In its annual report, the company indicated a target to cut debt by $3 billion over the next three years. This initiative comes as Vedanta’s net debt rose by 25% to Rs 56,300 crore as of March 31, 2024.
Vedanta’s recent efforts to raise funds include the board’s approval for Rs 1,000 crore fundraising through non-convertible debentures via private placement. The company also plans to issue additional funds through debentures in the coming months, with a targeted amount of $1 billion. Vedanta is also undergoing restructuring, with plans to split into six different units to improve financial performance and address debt concerns.
