Vedanta chairman Anil Agarwal envisions that the parent company, Vedanta Resources will become a zero debt company over the next few years.
In an exclusive interaction with CNBC-TV18's Nigel D'Souza, Agarwal said that he is "very comfortable" with the current debt levels in the company. "Our banks, lenders everybody is very very comfortable. My dream my vision is in few years, I will have a zero debt company," he said.
In an exchange announcement earlier today, Vedanta said that Vedanta Resources, the parent company, has paid all of its maturing loans and bonds which are due in May and June 2023. Post this reduction, the company's gross debt stands at $6.4 billion, which is a reduction of $3.3 billion since the company announced its deleveraging plan in March 2022.
"We have a complete business plan by which we are very comfortable to take care of debt because all the money where we have built this company has come from the parent company and we have a fully plan how this will be paid," Agarwal said, adding that the company is comfortable with all the payment has been made in the past and also expressed confidence that payments will be made in the futures at well.
Vedanta recently raised a $250 million loan by pledging 4.4 percent equity in the listed entity. Agarwal said that while there is no plan to sell stake immediately, he can do so for the future of the company, shareholders and the company.
He further said that there is no plan with Glencore beyond the pledge of shares and that they did so only because they have good relations with them.
In an exclusive interaction with CNBC-TV18's Nigel D'Souza, Agarwal said that he is "very comfortable" with the current debt levels in the company. "Our banks, lenders everybody is very very comfortable. My dream my vision is in few years, I will have a zero debt company," he said.
In an exchange announcement earlier today, Vedanta said that Vedanta Resources, the parent company, has paid all of its maturing loans and bonds which are due in May and June 2023. Post this reduction, the company's gross debt stands at $6.4 billion, which is a reduction of $3.3 billion since the company announced its deleveraging plan in March 2022.
The filing further said that ultimately, the company intends to bring gross debt down to zero, which will be aided by expectations of robust demand, particularly in India, along with strong operational performance.
"We have a complete business plan by which we are very comfortable to take care of debt because all the money where we have built this company has come from the parent company and we have a fully plan how this will be paid," Agarwal said, adding that the company is comfortable with all the payment has been made in the past and also expressed confidence that payments will be made in the futures at well.
Vedanta recently raised a $250 million loan by pledging 4.4 percent equity in the listed entity. Agarwal said that while there is no plan to sell stake immediately, he can do so for the future of the company, shareholders and the company.
He further said that there is no plan with Glencore beyond the pledge of shares and that they did so only because they have good relations with them.
First Published: May 31, 2023 4:41 PM IST
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