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Vedanta Explores Options To Sell Tamil Nadu Copper Plant For Rs 4,500 Crore

Swarajya News StaffJun 22, 2023, 11:05 AM | Updated 11:05 AM IST
Vedanta

Vedanta


According to a report, Vedanta Limited, promoted by billionaire Anil Agarwal, is exploring options to sell its copper plant in Tamil Nadu at a valuation of Rs 4,500 crore, as it plans to revive the unit.

In June 2022, the company invited expressions of interest (EoIs) for the unit but did not receive a positive response due to the plant's closure for the last five years.

As reported by Business Standard, an unnamed banking source stated that the process has now restarted, with bankers reaching out to potential bidders.

On 12 June, the company invited EoIs to "restart activities" following the Supreme Court's direction.


The sale of the unit would contribute to meeting VRL's capital expenditure of $1.7 billion for this year.

Analysts suggest that VRL has other options available to raise funds, such as dividend upstreaming, domestic bond private placement of up to Rs 2,100 crore, and asset sales.

VRL is optimistic about paying off its debt obligations in the coming months, thanks to its recent efforts to raise $1.3 billion.

VRL currently has $1.7 billion in short-term investments across various bank deposits, quoted bonds, and mutual funds as of March 2023.

CreditSites analysts believe that VRL could liquidate these investments if necessary, but it may result in a potential hit to the mark-to-market value.

Vedanta Ltd's shares were trading at Rs 282.45 on NSE, showing a 0.43 per cent increase on the morning of 22 June.

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