Vedanta shares were on the up on Wednesday after a confident board statement stated it has enough means to meet debt repayment liabilities in the coming quarters.
What Happened? Vedanta Resources Ltd., the majority owner of Vedanta, in a statement, clarified that the company was close to tying up fresh loans of $1 billion (₹8,254.73 crore) from a syndicate of banks.
The mining and oil and gas company, which is close to finalising $750 million (₹6,190.5 crore)-worth of bilateral facilities, is confident of meeting its maturities for the quarter ending June 23.
“The remaining liquidity requirements can be addressed internally,” the company said in its filing with Singapore Exchange.
"We have multiple options for both refinancing as well as repayment through internal accruals," the company added.
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Vedanta Resources also said it pre-paid all of its maturities due till March 2023 and has deleveraged by $2 billion (₹16,508.6 crore) in the past 11 months. Thus, it has achieved half of its $4 billion (₹33,015.9 crore) three-year debt reduction commitment in the first year, ahead of its plans for this fiscal.
Over the past few days, Vedanta’s stock had fallen sharply after it hit a roadblock in its acquisition of state-owned Hindustan Zinc. A sharp rise in US dollar rates in the forex market also led to considerable depreciation of Vedanta’s bond yield.
Price Action: Vedanta Ltd shares were trading 1.32% higher at ₹272 on Wednesday soon after markets opened for trading.
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