Vedanta, a prominent player in the metal and mining sector, has devised a strategic plan to alleviate its debt burden, aiming to reduce it by a substantial $3 billion over the next three years. The blueprint for debt reduction was unveiled during an analyst meet by Vedanta Limited, a subsidiary of Anil Aggarwal's Vedanta Resources Limited.
The ambitious goal is to curtail the total debt of the parent company by $3 billion by the fiscal year 2026-27 without burdening the listed indian company with additional debt. To generate necessary funds, Vedanta is set to divest its assets related to iron ore and steel, with plans to monetize these assets in the first quarter of the fiscal year 2024-25. Initially slated for sale by march 2024, the revised timeline now targets the period between april and june 2024.
Furthermore, Vedanta envisions demerging its indian unit into six distinct verticals, with completion anticipated by the conclusion of the next fiscal year. This strategic move follows Vedanta's previous consolidation efforts, involving mergers of various entities between 2012 and 2017. The present plan includes the listing of multiple companies on the stock market.
On the stock market, Vedanta shares exhibited a positive trend, closing at Rs 272.70 with a 1.73% increase on NSE. Nuvama, a brokerage firm, has issued a buy rating for Vedanta, setting a target of Rs 394, indicating a potential 45% upswing in the stock's value.
