Vedanta's demerger plan hits pause over hidden debts
Vedanta Ltd's plan to break up its Indian businesses into five separate companies just hit pause.
The National Company Law Tribunal has pushed the hearing after government officials flagged worries about hidden debts and unclear assets tied to Vedanta's Malco Energy unit.
To calm concerns, Vedanta promised a corporate guarantee for the government.
Regulatory speed bumps on demerger
India's market regulator SEBI sought further details and flagged disclosure issues regarding the demerger plan.
Even with these regulatory speed bumps, most shareholders and creditors are sticking with the split.
If it goes through, you'll see new standalone companies in aluminum, oil & gas, power, iron & steel, and the zinc & silver businesses will remain under the restructured Vedanta Ltd—meant to help each business focus better and manage risks.
Hindustan Zinc plans major expansion
Vedanta-owned Hindustan Zinc is planning a major boost—adding about one million tons of zinc capacity over five years by investing ₹32,000 crore.
Most of this cash will come from their own profits (with some bank loans), while they aim to keep borrowing costs around 9% this year.
Vedanta bets on rising zinc prices
Vedanta expects global trade tensions to ease and zinc prices to climb near $3,000 per ton by late 2025.
Instead of just paying down debt fast, they're putting money into projects that promise bigger returns than their loan interest—a move they hope pays off as markets shift.