Vedanta Resources Reduces Debt with Strategic Stake Sale

Certainly! Here’s the revised text: Vedanta Resources announced plans to sell a 2.6 percent stake in its Mumbai-listed mining conglomerate to reduce debt and support growth strategies. This move will be executed through its unit, Finsider International, which currently holds a 2.63 percent stake in Vedanta Ltd. According to a company spokesperson, “Finsider International Company Ltd, a subsidiary of Vedanta Resources Ltd (VRL), has agreed to sell 2.6 percent shareholding in Vedanta Limited to a group of well-established institutional investors, following a proposal from one of its banks.” After utilizing the proceeds from this transaction to repay debts, Vedanta Resources will have reduced its debt by over USD 650 million since the beginning of the current fiscal year in April. Recent stock exchange data indicates that a block deal involved the transfer of 18.5 crore shares of Vedanta Ltd, which at a share price of Rs 440, may amount to Rs 7,967.8 crore. The promoter’s stake in Vedanta Ltd has decreased from 69.68 percent in December 2022 to 61.95 percent in March 2024. It’s worth noting that in February, the promoters sold a stake in a block deal for Rs 2,615 crore. “The current stake sale aligns with the Group’s commitment to significantly reduce its debt on both the India and VRL level, as part of broader efforts to support its strategic growth plans,” the spokesperson stated. “After the repayments from this transaction, VRL would have reduced its debt by upwards of USD 650 million since the beginning of FY 2025.”