Materials
The unlisted parent company of the Indian-listed Vedanta Ltd and Konkola Copper Mines in Zambia, has been in the news due to apprehensions that the company will find it difficult to meet payment of US$3bn bonds maturing in the next two years. Although the media have focused on the dollar bond maturity over the next two years, the company’s own disclosures reveal that in FY24 (year ending 31st Mar), US$4.3bn of bonds will be maturing and a further US$4.1bn in FY25. In fact, a liquidity analysis of the company reveals an even graver situation. According to calculations by Hemindra Hazari, the company has a liquidity shortfall of US$10.8bn in FY24!
Edition: 172
- 27 October, 2023