Vedanta faces do or die battle if delisting fails

Vedanta Ltd, the metals to mining conglomerate, may find it tough to survive if its corporate restructuring exercise fails as the group is faced with burgeoning debt on one hand and falling revenues on the other, analysts said.

Vedanta’s restructuring hinges on the successful completion of the delisting of the company’s shares from stock exchanges, which is critical as the current structure is inefficient and difficult to sustain in the challenging environment and also contributes to its lower rating, they said.

Vedanta Resources, the parent, has mobilised USD 3.15 billion for the delisting exercise, resulting in total debt of the group swelling to over Rs 1,25,000 crore.

At the same time, two critical businesses of copper and iron ore are non-operational due to legal and regulatory issues.

ET Energy World
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