Anil Agarwal arranged funds from his own rivals, made a new plan to get Vedanta out of trouble

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Is Anil Agarwal of Vedanta on the path of Adani, took this big step to repay the loan of 1500 crores

Anil AggarwalImage Credit source: File Photo

Vedanta Group is burdened with debt. Many projects are stuck and they have got a big blow from the government even regarding the semiconductor project. Such Anil Agarwal has made a new plan to get the group out of trouble. According to a report, Vedanta Resources Limited ie VRL, the parent company of Vedanta Limited, has raised $450 million from two of its own rivals. According to experts, this move of his shows that he is facing difficulties in borrowing from traditional channels like banks and private lenders.

How much money was taken from which companies

VRL has raised $200 million from commodities trading company Trafigura Group and $250 million from mining and natural resources company Glencore International AG. According to a Nomura research report, the money received from Trafigura will be used to repay Oaktree’s debt of $150 million. According to the information given to the stock exchange, Anil Agarwal has taken a loan by pledging 4.4 per cent shares of Vedanta Limited with Glencore International AG. Till now no official statement has come from Vedanta regarding this.

Aggarwal can raise another billion

It has also been mentioned in the Nomura report that VRL can raise a fund of $ 1 billion in the fourth quarter of the current financial year. This will be used for finance repayment of 13.875 per cent bonds. Vedanta chairman Anil Agarwal, in an interview with the Financial Times on March 8, dismissed the concerns raised over loan repayments. At that time, he quoted the newspaper as saying that everyone wants to lend him and $1 billion is like peanuts to him.

debt has reduced

According to stock exchange disclosures, Agarwal has pledged his entire 68.11 per cent stake in Vedanta Ltd to raise funds. According to a statement issued by VRL to the Singapore Stock Exchange on Wednesday, Vedanta said it intends to make the group debt free. VRL also informed that it reduced its debt to $6.4 billion as on March 31, from $9.7 billion a year ago.

Dividend of 37,730 crores

A part of this comes from the dividend paid by Vedanta Limited. Vedanta Limited paid five dividends worth Rs 37,730 crore in FY2023, of which Rs 25,700 crore was upstream to VRL. Agarwal had said in an interview to ET on April 26 that in the last 25 years, we have not defaulted even once. There have been ridiculous things about our debt.

$750 million loan was taken from Octree

Vedanta Holding Mauritius, WestGlobe and Finsiders International Co Ltd had jointly raised $750 million from Oaktree in April 2021. This borrowing, known as Oaktree Box. In April, Vedanta repaid $250 million of the Oaktree loan and is now preparing to pay another $150 million.

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