Vedanta rises nearly 2% on Tuesday as firm cuts gross debt by $1 billion
1 min read 25 Apr 2023, 04:02 PM ISTThe parent company of Vedanta Ltd, Vedanta Resources Ltd, which is led by Anil Agarwal, stated on Monday that it has paid off all outstanding loans and bonds due in April, lowering its gross debt by an additional $1 billion.
PremiumShares of Vedanta Ltd gained nearly 2% on Tuesday's trade following the news that all maturing loans and bonds due in April have been settled by the company, resulting in a $1 billion reduction in gross debt. The stock hit an intraday high of ₹281.40 and low of ₹275.45 on NSE.
The parent company of Vedanta Ltd, Vedanta Resources Ltd, which is led by Anil Agarwal, stated on Monday that it has paid off all outstanding loans and bonds due in April, lowering its gross debt by an additional $1 billion.
“Vedanta has now reduced debt by $3 billion since it announced in February 2022 its intention to accelerate deleveraging and reduce its debt by $4 billion within 3 years. Vedanta has thereby achieved 75% of its committed reduction in just 14 months," the company said in an exchange filing.
The gross debt of Vedanta is currently $6.8 billion, down from $7.8 billion at the end of March (as stated on February 15) and $9.7 billion at the end of March 2022.
Vedanta Resources has bonds worth $500 million due in May and another bond worth $1 billion due in January 2024. The company asserts that ‘strong operational performance will lead to further deleveraging.’
“During the balance of FY24, we believe that strong operational performance from our world-class asset base, along with robust commodity prices, will lead to further deleveraging at Vedanta," the company said.
Also Read: Vedanta clears loans due till April, cuts debt by $1 bn more
However, the stock has fallen 33.21% from a 52-week high of 419.7 recorded on April 29, 2022.
The stock price fell 32.8% and underperformed its sector by 26.3% in the past year. The weekly average delivery volume is 32.85%.
“After last few days of weakness the stock prices is showing positive momentum and we are seeing good volumes as well, expect this move to continue where the stock may retest 292 - 294 in near term , 275 is support," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
