+
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.

Related Stories

Gold Stories

Next Story
Resources

NCC Founder and Padma Shri Awardee AVS Raju Passes Away at 89

Dr Alluri Venkata Satyanarayana Raju, founder and Chairman Emeritus of NCC Limited and a Padma Shri awardee, passed away in Hyderabad on 13 October 2026. He was 89.Born on 18 April 1937 in Antarvedipalem village in Andhra Pradesh's erstwhile East Godavari district, Raju began his entrepreneurial journey in 1956. He established Nagarjuna Construction Company (NCC) Limited in 1978, which subsequently emerged as one of India's leading construction and infrastructure companies.Under his leadership, NCC became a public limited company in 1990 and expanded into one of India's prominent listed constr..

Next Story
Infrastructure Transport

Embraer to Acquire 51 Per Cent Stake in Mahindra Aerospace Arm

Brazilian aerospace major Embraer will acquire a 51 per cent equity stake in Novavayu Aerospace, a step-down subsidiary of Mahindra and Mahindra, under an Investment Agreement notified by the automobile company in an exchange filing. The transaction will give Embraer control of the aerospace business. Following completion of the acquisition, Novavayu Aerospace will cease to be a wholly owned subsidiary and become an associate of Mahindra Defence Systems, which is a step-down wholly owned subsidiary of Mahindra and Mahindra. The agreement is expected to be completed on or before December 1. Mah..

Next Story
Infrastructure Urban

RBI Opens Special Dollar Window for Three State-Run OMCs

The Reserve Bank of India (RBI) has opened a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies (OMCs), in a move aimed at easing pressure on the Indian rupee. The facility will take effect on October 12, 2026, and remain available until further notice. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are eligible to use the arrangement. Under the facility, the RBI will sell US dollars to the three companies through designated banks, allowing them to meet their oil-import payments without sourc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code