Street gives a thumbs up to Anil Agarwal-led Vedanta's demerger plan

While the holding company discount should reduce and operational flexibility improve, there are still some concerns on the parent's debt

Debt management is going to be a worry for the Vedanta group until FY25 at least. However, the restructuring of business divisions in Vedanta India could lead to an unlocking of values.

The group structure is fairly complex. Anil Agarwal-led Vedanta Resources (VRL), which is London-listed, has a lot of debt on the balance sheet.

It will have to repay $1 billion in secured bonds by January 2024 and at least another $300 million in calendar 2024.

By the end FY25, it will have to repay around $3 billion in debt.

Refinancing this would be hard, given the tight money