Mumbai: Vedanta Ltd’s plan to split into six entities is a modestly negative development for the bondholders of the UK-based Vedanta Resources, given that the rejig does not address the precarious debt situation of the holding company, financial research and credit analysis firm CreditSights said Tuesday.
“We believe Vedanta could have resorted to selling down its stake in wholly-owned units such as Cairn India, Aluminium in order to generate cash and to pay down debt, instead of this route,” CreditSights told its clients.
“Ultimately, we see the group structure becoming more complex rather than simplified as the proposed arrangement will contain 17 investment vehicles under Vedanta Inc / Volcan,” it said.
CreditSights has maintained its ‘buy’ recommendation for Vedanta Resources but said it would prefer April 2026 bonds of the company. “Given the potential restructuring of 2024 and 2025 bonds and uncertainty around the final terms of their restructuring, we prefer the Apr-2026 bonds,” it said.
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