NEW DELHI: Anil Agarwal-led Vedanta has pledged 2.44% of its stake in group company Hindustan Zinc to raise Rs 1,500 crore. With this, 91% of Vedanta’s 64.92% stake in Hindustan Zinc (HZL) is now pledged. In another way, 59.31% of Vedanta’s 64.92% stake in Hindustan Zinc is now pledged.
Majority of these shares or 56.87% of Vedanta’s holding, are pledged with the SBI Trustee Capital.
This latest 2.44% pledge has been created in favour of Axis Trustee Services. The company said that
the borrowed amount would be utilized for general business purposes including repayment of existing debt, capital expenditures and operating expenses.
This latest fundraising via share pledging comes as Vendanta has put focus on reducing its debt.
Vedanta Resources, the parent firm of Vedanta, has debt maturities worth nearly $7 billion lined up for the next few years.
Recently, rating agency Crisil said that Vedanta Resources has annual debt maturities of about $3 billion each in FY24 and FY25, with high near-term maturities of $1.7 billion in the first quarter of fiscal 2024. There are also reports that Vedanta is in advanced negotiations to raise $1.5-2 billion from US hedge fund Farallon Capital Management.
Vedanta had earlier proposed to sell its global zinc assets to Hindustan Zinc for nearly $3 billion as the Rajasthan-based company has long been a cash cow for the mining giants, squeezing out rich dividends.
However, the Indian government, which owns 30% of Hindustan Zinc, has opposed the move.
91% of Vedanta’s stake in HZL now pledged
With this, 91% of Vedanta’s 64.92% stake in Hindustan Zinc is now pledged. In another way, 59.31% of Vedanta’s 64.92% stake in Hindustan Zinc is now pledged. The majority of these shares or 56.87% of Vedanta’s holding, are pledged with SBI Trustee Capital.