Vedanta Resources debt is to reduce by around $300 million in the first half of the fiscal year 2021-22 and plans to cut debt by another $500 million in the second half, according to a press release issued on Monday.
The most recent Vedanta Resources debt repayment includes inter-company loans as well as a payment to Volcan, a group entity, for an undisclosed amount.
“With entire debt repayment at Volcan, the pledge on all the equity shares of VRL has been released. We believe that strong operational performance from our world-class asset base will strengthen our balance sheet and lead to investment-grade credit metrics,” the company said in a press statement.
Green undertaking
Vedanta also formed an environmental, social, and governance committee of its board, according to the business release, in order to decarbonize its operations and reach net-zero ambitions.
It has also taken a digital-first approach, which entails digitizing operations and procedures in order to improve health, safety, environmental compliance, and risk management.
A bid to remove the item from the list was unsuccessful.
Anil Agarwal, the Vedanta conglomerate’s billionaire founder and chairman, had committed his stake in the Indian affiliate Vedanta to increase the open-offer price to grow his stake.
The open offer was launched in order to remove the Indian unit off stock exchanges.
In the open offer issued by Agarwal, Vedanta’s public shareholders offered 377 million shares, compared to the offer to buy up to 651 million shares, or 17.5 per cent equity, at INR235 apiece.
The promoter was only able to acquire 58% of the maximum available shares through the open offer, bringing their ownership to over 65%.
This was less than the statutory 85% equity level for a promoter to delist a firm.
Vedanta’s shares closed 2.20% higher at INR308.50 on the National Stock Exchange today.
On the BSE the company’s stock closed at 308.40, up 2.19%.
