Shares of Vedanta Ltd will be in focus after the Anil Agarwal-led company in a filing to stock exchanges said it was exploring possible legal options, including filing of review petition in the matter of cooper smelter plant closure, as per advice from its legal experts.
To recall, the Supreme Court (SC) had recently concluded that the Special Leave Petition by the company regarding the closure of cooper smelter plant in Thoothukudi did not warrant interference under Article 136 of the Constitution of India and dismissed the Special Leave Petition filed by the metals & mining company .
The Special Leave Petition was filed by Vedanta Limited before the SC against the order of Division Bench of Madras High Court at Chennai vide which the Court had upheld the closure of the Copper Smelter Plant at Thoothukudi.
"The Company is in receipt of the Judgment passed by the Hon’ble Supreme Court on March 05, 2024 around 7:00 p.m. IST. The company is exploring possible legal options, including filing of review petition as per advice from its legal experts," it said.
Vedanta has recently been in focus due the large amount of debt on its books as well as meeting the short-term bond repayments. The company has outlaid a plan on securing funding through internal accruals, asset monetisation, and potential refinancing to meet its debt requirements.
During the recent analyst meet, YES Securities said the company was focused on showcasing the plans of setting targets for deleveraging for both parent Vedanta Resources (VRL) and Vedanta.
"VRL has $1.1bn of debt obligations to be met in FY25 and expects to generate an EBITDA of $6bn during the same period. The company maintained that the debt figure will be partially addressed through internal accrual and partly by other key strategic actions such as asset monetization. On the VDL front, the $1.5bn of debt is to mature in FY25. The company expects to garner pre-capex cash flows of $3.5-4 billion during the same period which would be sufficient to meet the maturity amount in addition to having a refinance option," YES Securities said.
Additionally, the gross debt amount can also see an uptick for their project capex which is to be funded through debt and surplus internal accruals, it noted.