Vedanta split unlikely to help parent's near-term debt crisis – analysts – Reuters India

BENGALURU, Oct 3 (Reuters) – Metals-to-oil conglomerate Vedanta Ltd’s (VDAN.NS) move to split into six separate units in the next 15 months may not immediately help its UK-based parent meet a looming payment deadline for about $4.2 billion rupees of debt, at least four brokerages said.

The billionaire Anil Agarwal-led company on Friday reversed an earlier strategy of taking the entire company private, saying it will, instead, spin off into various commodity-focused companies looking to shore up financials after a string of poor results.

The conglomerate’s parent, Vedanta Resources, is battling a host of rating downgrades triggered by worries over outstanding dues – $6.4 billion as of May – according to the company.

“The demerger does not …

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