New Delhi: Mining group Vedanta Ltd has received approval from most of its creditors for the proposed split of businesses, a significant step in the company's plan to be split into six independently listed companies.
“I am happy to tell you all that we have received 52 percent and additional percent that we need to reach 75 percent. We have also crossed that threshold. Most of the lenders have approved it. A senior Vedanta official said in a recent bondholder conference call.The transcript of the call was reviewed.
"Some are pending for their committee meeting and some are pending for their board meeting. So, as we speak, we have already received 52 per cent. The remaining requirement will be there in a week or 10 days' time. Will be completed. And after that, we will file the application in NCLT.,
According to a banker familiar with the developments, a major lender – State Bank of India – had already given its consent. This crucial approval is seen as the last major compliance requirement for the company which was closely watched by the market and paves the way for the US$20 billion demerger.
The green signal by most lenders comes at a time when Vedanta has shown significant progress in deleveraging. As of March 31, the company's net debt declined by Rs 6,155 crore to Rs 56,388 crore by December 2023, mainly driven by strong cash flow from operations and working capital release.
Note, credit rating agencies have given strong credit ratings to the company and its debt instruments.ICRA had on May 30 given A1+ rating to Vedanta's Rs 2,500 crore commercial paper. It had given the company a long-term rating of ICRA AA- and short-term rating of Icra A1+ in early May. Similarly, CRISIL and India Ratings have given Vedanta long-term ratings of AA- and A+ and short-term ratings of A1+ and A1, respectively.
Vedanta's lenders include state-owned lenders such as State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Overseas Bank, Union Bank of India and Bank of Maharashtra. Private sector banks - Yes Bank, ICICI Bank, Axis Bank, IDFC First Bank and Kotak Mahindra Bank are also part of Vedanta's consortium of lenders.The demerger will create independent companies for aluminium, oil and gas, power, steel and ferrous materials and base metals businesses, while the existing zinc and new incubated businesses will remain under Vedanta Limited.
“I am happy to tell you all that we have received 52 percent and additional percent that we need to reach 75 percent. We have also crossed that threshold. Most of the lenders have approved it. A senior Vedanta official said in a recent bondholder conference call.The transcript of the call was reviewed.
"Some are pending for their committee meeting and some are pending for their board meeting. So, as we speak, we have already received 52 per cent. The remaining requirement will be there in a week or 10 days' time. Will be completed. And after that, we will file the application in NCLT.,
According to a banker familiar with the developments, a major lender – State Bank of India – had already given its consent. This crucial approval is seen as the last major compliance requirement for the company which was closely watched by the market and paves the way for the US$20 billion demerger.
The green signal by most lenders comes at a time when Vedanta has shown significant progress in deleveraging. As of March 31, the company's net debt declined by Rs 6,155 crore to Rs 56,388 crore by December 2023, mainly driven by strong cash flow from operations and working capital release.
Note, credit rating agencies have given strong credit ratings to the company and its debt instruments.ICRA had on May 30 given A1+ rating to Vedanta's Rs 2,500 crore commercial paper. It had given the company a long-term rating of ICRA AA- and short-term rating of Icra A1+ in early May. Similarly, CRISIL and India Ratings have given Vedanta long-term ratings of AA- and A+ and short-term ratings of A1+ and A1, respectively.
Vedanta's lenders include state-owned lenders such as State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Overseas Bank, Union Bank of India and Bank of Maharashtra. Private sector banks - Yes Bank, ICICI Bank, Axis Bank, IDFC First Bank and Kotak Mahindra Bank are also part of Vedanta's consortium of lenders.The demerger will create independent companies for aluminium, oil and gas, power, steel and ferrous materials and base metals businesses, while the existing zinc and new incubated businesses will remain under Vedanta Limited.
