Vedanta Group shares plunged early on Thursday after a media report suggested that the mining giant is planning to raise up to $1 billion (₹8,273.5 crore) from credit funds.
What Happened? According to a report by the Economic Times, the company has widened its net for borrowings to credit funds to meet upcoming repayments. The prices offered to Vedanta by the banks are claimed to be 300 basis points higher than what was earlier expected, per the report.
Some of the credit funds that the mines and minerals giant has reached out to include Farallon Capital, Davidson Kempner and Ares SSG Capital.
The ET report also highlights that the move comes on the back of banks playing hardball on a $1 billion (₹8,273.5 crore) loan to Vedanta Group amid a tightening credit market.
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Vedanta Resources Ltd, parent of Vedanta Ltd on Wednesday said it had repaid $150 million (₹1,241 crore) borrowed from Barclays Bank and $100 million (₹827.5 crore) borrowed from Standard Chartered Bank, according to an exchange filing.
Encumbrances on Vedanta shares have been released following the loan repayment, mentioned the company.
The company had earlier said that it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns about its financial position.
Price Action: Vedanta Ltd shares dropped by 3.32% at ₹271.15 shortly after markets opened for trading on Thursday.
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