Anil Agarwal: After Gautam Adani, it is the turn of this businessman! Shares fall for eight consecutive days – after gautam adani anil agarwal’s troubles built up vedanta shares losing streak for eight sessions
[ad_1]
Vedanta’s troubles began in October last year. Then rating agency Moody’s downgraded the rating of Vedanta Resources, the holding company of Vedanta. This raised questions about the company’s ability to repay its debt. Moody’s said that the company has to pay $ 900 million in April and May but it is unable to raise funds. Apart from this, the company has to pay $ 900 million in the first quarter of the financial year 2024. Overall, the company has $3.8 billion in external debt, $600 million in intercompany loans and $600 million in interest bills by March 2024.
Shares rise after falling for eight days
However, Vedanta Resources says that Moody’s report does not have merit. It has raised $1 billion in the first half of this year, while Vedanta Ltd has raised $1.5 billion. Vedanta says it will pay its debt on time. The company said that it has repaid all the debt till March 2023. In the last 11 months, two billion dollars of debt has been repaid. Vedanta shares gained today after falling for eight consecutive days. It closed 3.91 per cent higher on the NSE.
Experts believe that there are two big challenges in front of Anil Agarwal. If the economic activities in China do not come back on track, then the era of huge profits in commodities will not return. Also, if he does not use the cash of Hindustan Zinc, he will have to take a loan from another place. Due to the high rate of interest, it will be expensive for them to raise loans. If he tries to sell assets to Hindustan Zinc against the government’s wishes, his $19 billion project to set up a semiconductor factory with Foxconn could be in jeopardy.
[ad_2]
Source link