Active Stocks
Fri May 24 2024 15:29:59
  1. Tata Steel share price
  2. 175.00 -0.26%
  1. NTPC share price
  2. 374.50 0.59%
  1. State Bank Of India share price
  2. 827.75 -0.55%
  1. ITC share price
  2. 436.55 -1.05%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Companies / People/  Vedanta likely to lose third CFO amid restructuring reports, stock tanks close to 3%
BackBack

Vedanta likely to lose third CFO amid restructuring reports, stock tanks close to 3%

The stock has tanked 5.70 points or 2.56 percent after the news broke sinking to ₹217.05 at 1.16 pm on October 23. The previous close was ₹222.75.

Vedanta likely to lose third CFO amid restructuring reports. Premium
Vedanta likely to lose third CFO amid restructuring reports.

Vedanta Ltd is likely to lose its third chief financial officer in as many years just as the mining conglomerate controlled by billionaire Anil Agarwal heads into an ambitious restructuring of its businesses, according to a report published by Bloomberg. 

The stock has tanked 5.70 points or 2.56 percent after the news broke sinking to 217.05 at 1.16 pm on October 23. The previous close was 222.75. 

People familiar with the matter, on the condition of anonymity, said that Sonal Shrivastava who joined the company in June informed Agarwal about her decision to leave last month. 

Agarwal is talking with finance professionals who had earlier stints in the group to replace her, and a decision is expected as early as this week, they told Bloomberg.

Shrivastava’s departure will add to Agarwal’s woes as his holding company, Vedanta Resources Ltd., faces about $3 billion of bond repayments in the next two years. The group has been engaging with bondholders on a potential restructuring of terms for the upcoming maturities. 

Her resignation, if accepted, will follow that of G. R. Arun Kumar, who left in 2021 after a failed attempt by Agarwal to take the Mumbai-listed company private, and Ajay Goel, who quit earlier this year.

Last month, Vedanta Ltd approved a plan to split itself into six listed companies. Following this, Agarwal hopes the move will attract investors directly to key businesses and improve the valuation of its component parts.

The shake-up would also make it easier to sell some assets to reduce its parent’s debt load, something the billionaire has long avoided.

Agarwal, who took over his father’s business making aluminum conductors in the 1970s before branching into trading scrap metal, built Vedanta Ltd. into a natural resources conglomerate through a series of ambitious acquisitions.

However, the need for cash to repay the holding company’s debt and plans to foray into new businesses, such as semiconductor manufacturing, has forced the tycoon to sell a stake in the company and revisit the group’s corporate structure to attract fresh funds. 

 

(With Bloomberg inputs)

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 23 Oct 2023, 11:00 AM IST
Next Story footLogo
Recommended For You