Vedanta in talks with US-based Farallon to raise at least $1 bn: Report

Anil Agarwal’s Vedanta Ltd, a commodities major, is in talks with US-based Farallon Capital Management to raise at least $1 billion, said a report on Tuesday.

The structure of the fund-raising hasn’t been finalised, and discussions are ongoing, reported Bloomberg about the proposal.

Agarwal has been relying on dividends from the Mumbai-listed company to repay debts at his London vehicle, which has faced mounting investor concerns over its cash flows amid rising interest rates

The company had also been in talks with at least three banks including Barclays Plc, JPMorgan Chase & Co. and Standard Chartered Plc for a syndicated dollar-denominated loan. Last month, it announced plans to hand out a fifth dividend for the financial year ending March. 

The natural resources company declared interim dividend of Rs 20.50 per share.

The move came days after a report said Chairman Anil Agarwal was weighing selling less than 5% stake in Vedanta. The company called the report "untrue and baseless".

The dividend payments would lead to an outflow of around Rs 7,621 crore ($927.81 million), the company said in an exchange filing.

Vedanta had previously declared interim dividends per share of Rs 31.5, Rs 19.5, 17.50 rupees and 12.50 rupees this fiscal year.

In March, ratings agency Moody's downgraded Vedanta's London-based parent, warning that ongoing debt related issues expose Vedanta Resources "to material refinancing risks and exacerbate likelihood of a payment default or a distressed exchange".

There have been no defaults on debts from the group, Agarwal said at the India Today Conclave in March. On Tuesday, Vedanta's scrip on BSE closed 1% higher at Rs 272.5.