Vedanta manages debt issues while paying interest on NCDs

28 Dec 2023 , 11:13 AM

As it works through issues with debt repayment, mining firm Vedanta Limited paid the interest on secured redeemable non-convertible debentures (NCD) that were due on December 27.

The company claimed in an exchange filing that the NCDs had a face value of Rs 1,00,000 and a total potential value of Rs 2,500 crore.

The firm headed by Anil Agarwal, which is drowning in debt, was able to lower its net debt by Rs 1,420 crore during the course of the September quarter, bringing it down to Rs 57,771 crore.

The company said on December 19 that, in advance of the bond repayment due in January, its Committee of Directors had approved borrowing Rs 3,400 crore through private placement.

Ajay Goel, the business’s Chief Financial Officer (CFO), stated on November 4 that in order to meet the January bond repayment deadline, the company plans to raise $1 billion by the end of December.

A higher probability of liability management exercises led rating agency S&P Global to downgrade the stock in September, citing possible bond extensions. The firm was also put on credit watch negative. Vedanta has few other sources of capital, according to S&P.

In the meantime, November saw the Vedanta board authorise a donation of Rs 200 crore to political parties, according to media sources.

On November 4, the group announced a net loss of Rs 915 crore for the July-September quarter.

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