Asset divestment needed to resolve Vedanta's debt crisis: Analysts

VRL faces debt repayments of $3.6 billion due in FY25, including $2.2 billion in bonds, creating a significant funding gap of $3.1 billion

Analysts assert that Vedanta Group’s plan to demerge India-listed Vedanta Limited into six listed entities will not resolve the debt problem of its promoter entity, Vedanta Resources (VRL). They suggest that additional asset sales or stake sales by promoters will be necessary to repay the debt.
 

Vedanta is already considering the divestment of its iron-steel division and its copper plant. However, given the scale and earnings profile of these divisions, it is unlikely that they will completely address VRL’s funding gap.
 

Analysts from Kotak Institutional Equities observe, “The company’s consideration of separate listings for different businesses is unlikely to unlock