Anil Agarwal, a billionaire who controls the mining giant Vedanta Ltd, is attempting to recoup Rs 4,500 crore by selling the copper factory in Tamil Nadu. The business had requested expressions of interest (EoIs) for the unit last year. But because the factory had been shut down for the previous five years, it received no positive feedback.
Details on Bankers are contacting bidders as Vedanta considers selling its copper plant in Tamil Nadu for Rs. 4500 crore
According to a Business Standard story, the process has now restarted as bankers are contacting possible bidders.
The Tamil Nadu Pollution Control Board (TNPCB) issued the directive to shut down the plant. Vedanta then appealed the closure order to the Supreme Court, and the outcome is anticipated by the end of August.
On June 12, the corporation sent EoI an invitation to resume operations in accordance with the Supreme Court’s directive.
The parent company of Vedanta Limited, Vedanta Resources (VRL), is attempting to raise money to pay off its debt, according to the article. It would be able to satisfy its $1.7 billion in capital expenditures for this year with the money received from selling the company.
In the current fiscal year, Vedanta Resources still has $2.2 billion in debt to pay back. According to reports, the corporation is attempting to meet its repayment deadlines by relying on a variety of strategies, including brand monetisation, refinancing, and the shift of general reserves to retained earnings.
In FY24, the corporation paid $4.2 billion in total debt. The business has already contributed $2 billion towards this as of Q1 FY24.
The remaining $2.2 billion, which consists of the $1.3 billion in total principal needs, interest, and intercompany loans, must be repaid. This $1.3 billion includes a $1 billion bond that is due in January 2024.
The percentage of royalty from Indian listed company Vedanta Limited has increased from 2% to 3% starting this year in an effort to reach the payback target.
A similar royalty arrangement between Vedanta Resources and Hindustan Zinc was announced to investors earlier in June, with the royalty percentage set at 1.7%.