Shares of Vedanta jumped 3 per cent in Wednesday’s trade to snap an eight-day losing run. The stock gained after parent Vedanta Resources said it has pre-paid all of its maturities due till March 2023 and has deleveraged balance sheet by $2 billion in the past 11 months. The promoter said it was fully confident of meeting its upcoming maturities in the quarter ending June 2023.
“We have multiple options for both refinancing as well as repayment through internal accruals,” it said, adding that the company was in the advanced stage to tie up required financing through a $1 billion fresh loan from a syndicate of banks.
Following the development, Vedanta shares rose 2.57 per cent to hit a high of Rs 275.35 on BSE.
The Anil Agarwal-led firm said it has achieved half of its $4 billion 3-year debt reduction commitment in the first year, ahead of its plans for this financial year.
“We would like the investors to note that Vedanta group operating companies, underpinned by strong operating profitability from diversified and low-cost tier-1 assets, are delivering healthy cash flows whilst maintaining disciplined capital allocation,” said in a statement.
The London-headquartered firm said it was also close to finalise $750 million bilateral facilities with various relationship banks. “The remaining liquidity requirements can be addressed internally,” it added.
The company said that it has over the past 20 years raised more than $35 billion and “has an excellent track record of debt servicing”. “Vedanta remains confident of servicing its debt obligations through multiple options including the capability to make payments through internal accruals at all times,” it added.
Also read: Vedanta, JSW Steel, SpiceJet: What should be your strategy amid market correction
Also WATCH | Reliance Energy head Anant Ambani celebrates employee’s birthday on private jet, latter touches his feet, watch viral video
Also read: Vedanta Resources prepays all of its debt due till March 2023
Also WATCH | Adani Under Attack: Adani Group stocks plummet after Nathan Anderson’s Hindenburg report. What’s beyond the bloodbath?
