+
Vedanta plans $ 3 bn debt reduction in 3 years
COAL & MINING

Vedanta plans $ 3 bn debt reduction in 3 years

Vedanta Resources, the parent company of Mumbai-based mining conglomerate Vedanta, announced during an analyst meeting that it does not anticipate a rollover of its loans and aims to reduce its debt by up to $ 3 billion over the next three years, as stated by a senior official. According to Navin Agarwal, Vice Chairman of Vedanta and a member of the Promoter Group, who spoke at the recently concluded analysts' meet, "Deleveraging is our priority. We would be deleveraging the debt of Vedanta Resources by $ 3 billion over the next three years. Vedanta's cash flow pre-growth capex is estimated to be $ 3.5-4 billion for the financial year 2025, sufficient for secured debt maturities of $ 1.5 billion."

He further mentioned that the financial year 2025 maturities of $ 1,100 million and nearly $ 750 million of interest servicing would be handled through brand fees, dividends from operating companies, asset monetization, and other strategic initiatives.

According to Agarwal, Vedanta is a dynamic organization that continuously evaluates its capital structure, and the recent dilution was part of a broader strategy to achieve optimal capital allocation. He emphasised that the upcoming commissioning of growth projects would enhance earnings potential, leading to a natural reduction in the cost of capital.

Market participants, especially foreign institutional investors (FIIs), domestic institutional investors (DIIs), and retail investors, have shown considerable interest in the transaction, viewing it as a precursor to Vedanta's upcoming demerger announcement. The company recently divested a significant portion of its shares through its promoter entity Finsider International, reducing the promoter group's ownership stake to 61.95%.

Agarwal explained that the demerger aims to simplify the Group's corporate structure with sector-focused independent businesses, allowing each business to chart its growth trajectory. He stated, "The demerger will give global investors, including sovereign wealth funds, retail investors, and strategic investors, direct investment opportunities in dedicated pure-play companies. With listed equity and self-driven management teams, the demerger would also provide individual units a platform to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets," as announced in Vedanta's demerger announcement.

Vedanta Resources, the parent company of Mumbai-based mining conglomerate Vedanta, announced during an analyst meeting that it does not anticipate a rollover of its loans and aims to reduce its debt by up to $ 3 billion over the next three years, as stated by a senior official. According to Navin Agarwal, Vice Chairman of Vedanta and a member of the Promoter Group, who spoke at the recently concluded analysts' meet, Deleveraging is our priority. We would be deleveraging the debt of Vedanta Resources by $ 3 billion over the next three years. Vedanta's cash flow pre-growth capex is estimated to be $ 3.5-4 billion for the financial year 2025, sufficient for secured debt maturities of $ 1.5 billion. He further mentioned that the financial year 2025 maturities of $ 1,100 million and nearly $ 750 million of interest servicing would be handled through brand fees, dividends from operating companies, asset monetization, and other strategic initiatives. According to Agarwal, Vedanta is a dynamic organization that continuously evaluates its capital structure, and the recent dilution was part of a broader strategy to achieve optimal capital allocation. He emphasised that the upcoming commissioning of growth projects would enhance earnings potential, leading to a natural reduction in the cost of capital. Market participants, especially foreign institutional investors (FIIs), domestic institutional investors (DIIs), and retail investors, have shown considerable interest in the transaction, viewing it as a precursor to Vedanta's upcoming demerger announcement. The company recently divested a significant portion of its shares through its promoter entity Finsider International, reducing the promoter group's ownership stake to 61.95%. Agarwal explained that the demerger aims to simplify the Group's corporate structure with sector-focused independent businesses, allowing each business to chart its growth trajectory. He stated, The demerger will give global investors, including sovereign wealth funds, retail investors, and strategic investors, direct investment opportunities in dedicated pure-play companies. With listed equity and self-driven management teams, the demerger would also provide individual units a platform to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets, as announced in Vedanta's demerger announcement.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?