"Right now, the file is with Sebi. The important step that remains is securing the lenders' approval," group chief financial officer Ajay Goel said.
Mumbai-listed Vedanta had announced a demerger in September last year. It intends to form six companies, each of which will house its different businesses - aluminium, power, oil and gas, base metals and steel. Goel reiterated that the demerger is on track to be concluded by the end of the calendar year.
"We need 75% (by value) approval, and already have the approval from multiple private lenders. Approvals from some lenders, including State Bank of India and Canara Bank, are pending...we are working with the bankers and should be getting approvals by end of May," Goel said.
SBI has loaned Vedanta around INR 9,208 crore, while the exposure of Canara Bank is INR 1,730 crore, showed disclosures made by rating agencies. These include term loans. "There is no concern or apprehension at the banks' end. There could be queries around debt allocation. For example, if a loan is given to Vedanta, to which of the new companies will the loan go post the demerger (is the query type)," he said.
Vedanta's consolidated net sales fell 6% on year to INR 34,937 crore. Consolidated net profit fell 27% on year to INR 2,273 crore.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
