With its current credit line of more than $1 billion with Indian banks, Vedanta Resources, owned by Anil Agarwal, is dependent on them for its future refinancing.
After deducting the cash component of $3.5 billion, the group’s net debt comes to about $11.8 billion.
In order to assist the business restructure its debt in the upcoming months, Vedanta Group is reportedly exploring a combination of new lending institutions as well as unused credit lines from SBI, Bank of Baroda, Axis, and other consortium partner banks.
In fact, the Vedanta Group last year was successful in luring younger institutions, such as the Bank of Maharashtra, for a lending facility.
At the time this report was published, a message submitted to the Group had not received a response.
In the $15.3 billion total gross debt of the Vedanta Group, rupee loan exposure to Indian banking institutions amounts to $6.73 billion. In actuality, loans in foreign currencies account for a sizable chunk of the $8.57 billion.
Also, there are market indications that the organisation has been leveraged.
This news is written by Mr. Manpreet Rathor, Research Assistant, All India Legal Forum.