Lenders are not enthused by the proposal of Vedanta Ltd to split the company into six independent units as it’s expected to reduce the fungibility of cash flows across businesses and increase earnings volatility.
While Rs 68,000 crore Vedanta is yet to formally approach lenders with proposal on restructuring to spin off into six listed entities, besides looking for rationale for recast and structural details, lenders will seek business plans for each unit, approach to financial management and funding, said an official of a leading nationalised bank. Liquidity, debt levels and capex are key aspects for monitoring and the prudence in financials is crucial, the official said.
Register to continue reading this story
Google
Facebook
Email
Already have an account? Sign in