Will Vedanta’s Anil Agarwal get relief? Had to pledge shares to raise money

Vedanta HZL: Vedanta Resources Ltd, a giant in the metal and mining sector, is facing an unprecedented debt crisis these days. The company has to pay billions of dollars in the next two months and for this all options are being tried to raise funds. Vedanta has now pledged the shares of Hindustan Zinc Limited in this sequence.

got less than half price

Vedanta Limited has given information about this to the stock exchanges. Vedanta Limited is the Indian subsidiary of London headquartered Vedanta Resources Limited. He has told that Rs 1,500 crore has been raised by pledging some shares of Hindustan Zinc Limited. Interestingly, the company got less than half the value in this deal. 2.44 per cent shares of Hindustan Zinc have been pledged, whose market value is around Rs 3,300 crore.

so many shares pledged

As per information, these shares of Hindustan Zinc Limited have been pledged in favor of Axis Trustee Services. Axis Trustee Services is the facility agent in this loan deal. After the latest deal, the promoters’ pledged shares in Hindustan Zinc Ltd have increased to 91.35 per cent. These shares have been pledged in 4 different deals. The entire promoters’ stake in Vedanta Limited is already pledged.

Fund raising plan

Last week, Vedanta Limited had told that it will raise Rs 2,100 crore through NCDs on the basis of private placement. Earlier it was reported in the news that Vedanta Limited has sought approval from the Reserve Bank to guarantee a loan of $ 01 billion. Vedanta plans to raise funds in the form of debt through an overseas subsidiary, for which Vedanta Limited will guarantee. The funds would later be sent to Vedanta Resources Limited, a London-headquartered holding company, by way of dividends. It was also claimed in the news that Vedanta Group is in talks with JP Morgan, Barclays, Standard Chartered, Deutsche Bank for this proposed loan of $ 01 billion, which is stuck due to interest rate.

So many loans have to be repaid in two months

Rating agency Crisil had told in March that Vedanta Resources Limited has to pay about $ 1.7 billion i.e. Rs 13,885 crore in the form of loan installments by the end of June. Vedanta is looking at various funding options to pay these loan installments (Vedanta Debt Repayment). In view of the high level of debt, Crisil had downgraded the credit rating of the company in March (Vedanta Rating Downgrade).

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