Vedanta Group | Business Upturn

Vedanta shares surge as Ajay Goel returns as CFO amid Q2 output challenges

Mahita Jain — Wed, 25 Oct 2023 06:44:53 +0000

Vedanta, renowned as India’s foremost diversified natural resources conglomerate, saw its stock price surge by 2% in early trading on a Wednesday, reaching a share value of 219.40. This upward momentum followed a significant announcement made by the company in an exchange filing the preceding Tuesday. The company revealed its decision to appoint Ajay Goel as the new Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), effective as of October 30, 2023. Ajay Goel’s appointment comes as a result of the resignation of Sonal Shrivastava, who served as the CFO and KMP. Her resignation became effective at the close of business hours on October 24, 2023, and it was attributed to personal reasons.

Goel had stepped away from his previous role at Vedanta earlier in the year to embark on a venture with BYJU’s in the education sector. However, he chose to depart from this new endeavor after just six months.

“As part of Vedanta’s structured re-hiring program called ‘Gharwapsi’, Mr Ajay Goel joins back the Company. Ajay was earlier associated with Vedanta as acting CFO & KMP of the Company from October 23, 2021, to April 09, 2023. During his earlier role at Vedanta, Ajay contributed significantly in terms of driving business performance, managing the financial affairs of the company, and heading the finance function with his leadership acumen. He was also instrumental in successfully handling regulatory approvals, investment matters, capital allocation, investor relations, and major M&A-related affairs,” the company said in an exchange filing.

The increase in the company’s stock price after they announced that Ajay Goel would be the new financial leader is a sign that investors are happy about this decision. People think it’s a good move to have an experienced finance expert in charge, especially when the economy is changing, and there are challenges in production.

Vedanta CFO may depart amid business changes: Report

Mahita Jain — Mon, 23 Oct 2023 08:20:52 +0000

Vedanta Ltd, a prominent mining corporation controlled by billionaire Anil Agarwal, may be on the verge of losing its third chief financial officer (CFO). This potential departure comes as the company embarks on an ambitious restructuring of its various businesses, as reported by Bloomberg familiar with the matter.

Sonal Shrivastava, who assumed her role in the company in June, reportedly informed Agarwal of her decision to step down last month.Mr. Agarwal is currently in discussions with finance professionals who have had prior associations with the group to find a suitable replacement. A decision on this matter is expected to be reached as early as this week.

Shrivastava’s resignation, if accepted, will compound Agarwal’s challenges, especially as his holding company, Vedanta Resources Ltd, faces the prospect of repaying approximately $3 billion in bonds over the next two years. The group has been engaged in discussions with bondholders regarding a potential restructuring of terms for these upcoming maturities. Shrivastava’s exit follows previous CFO departures, including G. R. Arun Kumar in 2021, who left after an unsuccessful attempt by Agarwal to privatize the Mumbai-listed company, and Ajay Goel, who resigned earlier this year.

Last month, Vedanta Ltd decided to split itself into six different companies that will be listed on the stock market. Anil Agarwal, who leads the company, wants to make it easier for investors to invest in the specific parts of the business they like the most. This way, the different parts of the company can be worth more. This change will also make it simpler to sell some assets to reduce the debt of the main company, which Agarwal was hesitant to do for a while.

Vedanta Limited appoints new CEO and plans strategic investment in bauxite block

Viditha Ganji — Sat, 22 Jul 2023 14:47:11 +0000

Vedanta Limited, a leading global diversified natural resources company, has made significant announcements regarding its leadership and growth strategy. The company announced the superannuation of CEO Sunil Duggal and the appointment of Arun Misra as an Additional Director. Furthermore, the Board of Directors approved a substantial capital expenditure for the Sijimali bauxite block in Odisha.

Under the Board’s decisions made at the meeting held on July 21, 2023, Mr. Sunil Duggal, the Whole-Time Director & CEO, will retire on July 31, 2023. The Board expressed its appreciation for his valuable contributions during his tenure. Following his superannuation, Mr. Arun Misra has been appointed as an Additional Director, designated as an Executive Director of the Company, effective from August 01, 2023, until May 31, 2025. However, this appointment is subject to approval from the shareholders.

Mr. Arun Misra is currently the Chief Executive Officer (CEO) of the Zinc Business and has been instrumental in leading Hindustan Zinc Limited (HZL), a subsidiary of Vedanta Limited. With an illustrious career spanning 35 years, Mr. Misra has held key strategic positions and garnered recognition for his leadership prowess. Under his guidance, HZL has achieved significant milestones and retained a prominent position in corporate responsibility assessments within the mining and metal industry.

The Board also approved a capital expenditure of ₹1,305 Crores for the Sijimali bauxite block in Odisha. This strategic investment is expected to boost Vedanta’s growth prospects significantly. The block, secured through a mineral block auction conducted by the Government of Odisha, holds immense importance due to its size, location, and bauxite quality. With estimated reserves of 311 million tonnes of bauxite, the Sijimali block is poised to bolster Vedanta’s position in the industry.

The commencement of mining operations at the Sijimali bauxite block is targeted for the 3rd quarter of FY 2025. The capital expenditure will be phased over future financial years and will be funded through internal accruals. This investment aligns with Vedanta’s commitment to sustainable growth and strategic resource development.

Mr. Misra’s appointment as Additional Director and the decision to invest in the Sijimali bauxite block underscore Vedanta’s vision for progress and innovation. With a proven track record of excellence and diverse expertise in the mining and metal industry, Mr. Misra is poised to lead Vedanta towards new heights of success.

The company’s stakeholders eagerly anticipate the positive impact of these strategic decisions as Vedanta Limited continues its journey as a leading player in the natural resources sector.

Foxconn’s worries over Vedanta’s financials said to be potential reason for deal withdrawal

Adesh Dixit — Tue, 11 Jul 2023 17:04:52 +0000

Foxconn and the Indian Government had concern over the financials of Vedanta, which is said to be a potential reason why the Taiwanese company parted ways with Vedanta on the joint venture of chip making as per report by Reuters.

Vedanta’s London based parent company, Vedanta Resources has been under a constant debt rise.

In its statement to Reuters, Vedanta said that it is in a “comfortable” financial position and there was “no basis” on such speculations.

The Indian Information Technology ministry did not comment over the split. Various rating agencies downgraded Vedanta Resources on the ground that the firm is in the risk of debt defaults.

Debarring the reports, Vedanta Chairperson Anil Agarwal said, “There have been no defaults on debts from the group.”

Meanwhile, Foxconn on Tuesday said it plans to apply for incentives that India is offering under its semiconductor manufacturing policy. This comes a day after the company parted ways with Vedanta on a $19.5 billion chip making joint venture.

“Foxconn is committed to India and sees the country successfully establishing a robust semiconductor manufacturing ecosystem,” the company said.

“Foxconn is working toward submitting an application.” It added.

Yesterday, Foxconn withdrew from its semiconductor joint venture with Indian conglomerate Vedanta Group, which is a major setback to Prime Minister Narendra Modi’s plans to manufacture semiconductor chips in the country.

“There was recognition from both sides that the project was not moving fast enough” and there were other “challenging gaps we were not able to smoothly overcome, without sharing details.” Foxconn said on Tuesday.

“This is not a negative”, company added in the statement.

Vedanta set to takeover Foxconn Chip joint venture from Twin Star Technologies

Adesh Dixit — Fri, 07 Jul 2023 18:42:00 +0000

Vedanta Group led by Anil Agarwal is all set to acquire 100 percent stake in semiconductor and display unit from sister concern Twin Star Technologies.

Twin Star Technologies is a wholly owned subsidiary of Volcan Investments Ltd which again is the ultimate holding company of Vedanta Limited. This new addition will make Vedanta country’s first company in integrated semiconductor and display business.

Vedanta Ltd in its regulatory filings said, “The Board of Directors at their meeting held today, July 7, 2023, have considered and approved the acquisition of 100 per cent of Vedanta Foxconn Semiconductors Private Limited (VFSPL) and Vedanta Displays Limited (VDL), wholly owned subsidiaries of Twin Star Technologies Limited (TSTL) via share transfer at face value.”

The transaction is expected to be closed in the current quarter. Vedanta said that semiconductors and manufacturing of display glasses is a true representation of huge growth opportunities in the country.

Vedanta Group Chairman Anil Agarwal in his statement said, “Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting edge and world class electronics ecosystem. My dream is for every Indian youth to have an affordable smartphone, laptop and an electric vehicle.”

The semiconductors market stood at $24 billion in 2022 and is expected to reach $80 billion by 2026 whereas display panel market which currently stands roughly around $7 billion is expected to rise upto $15 billion by 2025.

Company also said that Made in India semi conductors and glass panels will be part of smartphones, laptops, television sets and electric vehicles and they have set up a plant with an investment of Rs 1.5 lakh crore for the same which will start gene

Billionaire Anil Agarwal’s Vedanta cuts debt by $2 billion

News Desk — Wed, 15 Feb 2023 06:50:29 +0000

The parent company of India’s largest resource company, Vedanta Ltd., which is owned by billionaire Anil Agarwal, announced on Wednesday that it has reduced its net debt by $2 billion during the previous 11 months. According to the company, it has already accomplished half of its $4 billion debt reduction commitment. It stated that throughout the fiscal years 2024 and 2025, it would keep reducing its $7.7 billion net debt.

In the first year, Vedanta Resources Ltd. reduced their commitment of $4 billion over three years by half. The London-based corporation stated that it will continue to reduce its $7.7 billion in net debt over the following two fiscal years.

According to the statement, the company intends to finance domestically half of its liquidity needs for the upcoming fiscal year and refinance the remaining balance. According to the commodities company, healthy cash flows are being generated by brisk Indian consumption.
According to the company’s statement, Vedanta Resources’ upcoming phase of expansion will be fuelled by the investments made by its affiliated firms in semiconductors, display glass, renewable energy sources, optical fibre, and transmissions.

Vedanta Resources Limited is a globally diversified natural resources firm with more than 65,000 workers and contractors, mostly in India, Africa, Ireland, and Australia. The company is involved in the extraction and processing of minerals, oil, and gas.

Due to higher input costs and windfall tax as compared to the same quarter last year, Vedanta Ltd. reported a more than 41% decrease in consolidated net profit at $2,464 crore in the quarter ended December 31, 2022. In the months of October through December, the company’s revenue climbed just 0.4% over the same period a year prior to reach 34,818 crore. Associated with Vedanta Resources Ltd. is Vedanta Ltd.

BPCL privatisation hits a roadblock as bidders struggle to find partners: Report

Cheryll Jain — Mon, 25 Oct 2021 12:13:21 +0000

Indian Government’s endeavour to privatise Bharat Petroleum Corp. has hit a roadblock as potential bidders struggle to find partners to reduce the rate of financial risk with buying the state-run refiner-cum-fuel retailer.

According to sources, the three potential suitors — the Vedanta Group, Apollo Global Management and I Squared Capital — have been in talks with several global energy giants and pension funds but have not found success in finalising partners for the BPCL bidding.

The reluctance of the companies to invest in the fuel retailer stems largely from the newly adopted sustainability rules and the global action of energy transition in light of the increasing risk posed by climate change, sources claimed. Moreover, the ramifications of the pandemic have also become a cause of apprehension, discouraging firms from making large-scale investments in the fossil fuel sector.

The hindrance in the process of finalising bidders for the sale is expected to slow down what is being termed as the nation’s biggest privatization drive. The selling of BPCL is estimated to generate $13 billion for the government, which holds a 53 per cent stake in the entity, and other shareholders.

The sources further added that the high valuation of BPCL has compelled the government and potential investors to look out for a consortium of bidders that can provide a strong technical and financial foundation for the acquisition.

“Bidders are conducting due diligence, but uncertainties over the bidder consortium and process complexity, including valuation may lead to potential delays,” American-based credit rating agency Fitch Ratings Ltd. predicted last month.

The slow-paced privatisation process of BPCL is likely to clash with the Centre’s aim to conclude the selling process by the end of the current financial year in March, for which the bidding process was scheduled to commence in November.