Headline

Vedanta denies news of putting steel asset sale on hold, says will sell at the right price – CNBC TV18

Vedanta denies news of putting steel asset sale on hold, says will sell at the right price – CNBC TV18

[ad_1]

A spokesperson of Vedanta Ltd. denied the Bloomberg report of the company putting the sale of its steel assets on hold, calling it “factually and completely incorrect.”

The spokesperson further said that the company is on track to complete its proposed capacity expansion to 3.5 MTPA by the end of the year for the steel business. “If Vedanta receives the right price, we will consider selling ESL<” the spokesperson added.

Bloomberg had reported on Thursday that the Anil Agarwal-owned mining conglomerate has put the steel business sale on hold after the recently concluded institutional share sale gave the company more breathing room with its finances, citing people familiar with the matter.

“Electro Steel Limited (ESL) is a trophy asset for both Vedanta Ltd. and for India. There are no other brownfield sites in the country that have the opportunity to grow to a 20MTPA manufacturing plant,” the spokesperson said.

ESL has the land, railways, infrastructure, mines – both iron ore and coal – and a gas pipeline running beside the plant that helps us to produce high quality green steel, according to the spokesperson.

Vedanta recently announced the closure of its QIP, through which it raised the entire ₹8,500 crore for which it had secured approval from the board and the shareholders.

A majority of Vedanta’s lenders have approved the proposed demerger of the business into six independent listed companies.

Under the plan to split the company into six separate units, existing shareholders will get one share each of the newly-listed entity for every share they already own in the company, the company said in February 2024.

Shares of Vedanta are off the highs of the day but trading with gains of 0.5% at at ₹424.5. The stock is up 65% so far in 2024. The stock is down 16% from its recent high of ₹506.

[ad_2]

Source link

Back To Top
Translate »