iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Vedanta Subsidiary Takes on Hefty ₹1,804 Crore Debt

17 May 2024 , 12:17 PM

A Vedanta subsidiary is raising expensive loans in a convoluted agreement to assist the India-listed mining company in paying down its debt.

A wholly owned subsidiary of Vedanta, Vedanta Semiconductors, raised ₹1,804 Crore in debt from private lenders, including Davidson Kempner and Varde Partners. According to news reports, Vedanta Ltd. will utilize the earnings to repay its debt through loans.

According to reports, the subsidiary will give Vedanta Ltd. two-year unsecured inter-corporate loans (ICLs), with the conditions of the loan to be determined by recommendations from an outside consultant.

According to news reports, Vedanta would utilize the ICL to settle its impending financial commitments and in part to pay brand fees to its London-based holding company, Vedanta Resources Ltd (VRL).

VRL was paid a brand fee of $413 million in FY23, which equates to 3% of Vedanta Ltd’s total revenue

Senior, secured, unlisted, and unrated bonds, backed by Vedanta’s corporate guarantee and the pledge of Hindustan Zinc shares, are how Vedanta Semiconductors raised debt.

Vedanta Semiconductors has received funding of ₹594 Crore from Credit Solution India Ltd, sponsored by Varde Partners; ₹398.4 Crore from Robusta 4 Finance DAC and Burlington Loan Management, funded by Davidson Kempner; and ₹237.25 cr from Fort Canning Investments Pte, backed by the Kotak group.

Additionally, the business received ₹94.5 Crore from Sankhya Financial, an affiliate, and ₹149.3 Crore from Trust Investment Advisory. Also, it received ₹237.5 Crore from two funds managed by Alpha Alternatives Group.

The bond structure stipulates that investors will get a 10% interest coupon that is payable on a quarterly basis, along with a redemption premium of 5.1%.

On April 6, the Vedanta Semiconductors board resolved to issue ₹3,500 Crore in debt, which it intends to utilize to finance loans between companies.

For feedback and suggestions, write to us at editorial@iifl.com

For opening a demat account click on: https://www.indiainfoline.com/
For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx
For loans, go to: https://www.iifl.com/

Related Tags

  • ICL
  • Vedanta
  • Vedanta semiconductors
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Most Read News

Indices end lower
21 Jun 2024|03:40 PM
Market Update: Nifty and Sensex Dip
21 Jun 2024|01:47 PM
Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.