Vedanta Ltd to Complete Sale of Steel Assets by March 2024, Aims to Reduce Debt

Vedanta Ltd, one of India’s leading conglomerates, has announced its plans to complete the sale of its steel assets by March 2024. The decision comes as part of the company’s strategy to reduce its overall debt and focus on its core mining businesses. The review of Vedanta’s steel and steel raw material business, which was formed through the acquisition of ESL Steel in 2018, began in June with the intention of selling the company.

Group Chairman Anil Agarwal revealed in an interview with CNBC-TV18 that Vedanta has secured financing of approximately $1 billion in January, with an additional $500-$600 million due in August. The company is also engaged in discussions with bondholders to further strengthen its financial position.

Vedanta’s parent company, Vedanta Resources, recently faced a series of rating downgrades due to concerns over its outstanding debt of $6.4 billion. In response, Vedanta decided to spin off into various commodity-focused companies, aiming to improve its financials.

By divesting its steel assets, Vedanta Ltd aims to streamline its operations and concentrate on its mining ventures, which have been the cornerstone of its success. This strategic move will enable the company to reduce debt and enhance its financial stability.

With the sale of its steel assets expected to be completed by March 2024, Vedanta Ltd is taking proactive steps to strengthen its position in the market and ensure sustainable growth in the future.