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  5. Vedanta halts bond sale plan amid Adani Group stocks rout: Report

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Vedanta halts bond sale plan amid Adani Group stocks rout: Report

Upstox
By Upstox News Desk

2 min read | Updated on November 21, 2024, 15:12 IST

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SUMMARY

Adani Group stocks tumbled on Thursday, November 21, as Gautam Adani, the billionaire chairman of the Adani Group and one of the world's richest people, has been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme. Adani Green Energy, the company at the centre of the allegations, also cancelled a $600 million bond sale.

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VEDL
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The mining conglomerate’s revenue from operations slumped 3.6%, declining to ₹37,171 crore in the second quarter of FY’25

The mining conglomerate’s revenue from operations slumped 3.6%, declining to ₹37,171 crore in the second quarter of FY’25

Vedanta share price: Amid the market volatility caused by the fresh crisis around Adani Group stocks, Vedanta Resources, as per a news report, is reassessing timing for a potential sale of dollar bonds.

Adani Group stocks tumbled on Thursday, November 21, as Gautam Adani, the billionaire chairman of the Adani Group and one of the world's richest people, has been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.

Adani Green Energy, the company at the centre of the allegations, also cancelled a $600 million bond sale.

According to a Reuters report, US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years and develop India's largest solar power plant project.
"Vedanta held fixed-income investor calls Wednesday to discuss the possible debt offering. But it’s now considering instead launching the deal as early as next week, if yields stabilise," Bloomberg reported, citing sources.

Vedanta has been no stranger to swings in its own bonds previously, after they were dragged down by plunging metals prices, domestic oil taxes, and fears about how it could honor its debts, the report added.

But a recovery in commodities and a wave of demand for Indian assets as investors limited exposure to China helped holders who stuck with the company get well rewarded. Its notes due April 2026 are indicated at about 100 cents, up from below 50 cents in 2022.

At the time of writing this report, Vedanta Ltd shares were trading around 0.5% lower at ₹441.30 apiece on the BSE. 

Meanwhile, Vedanta's philanthropic and CSR arm, Anil Agarwal Foundation (AAF), has invested ₹437 crore in various segments in the previous fiscal year.

ALSO READ | Adani group stocks' combined mcap erodes by ₹2.45 lakh crore; Adani Enterprises slumps 23%

AAF annual Social Impact Compendium—'Nurturing', Transforming, Leading: India's Growth'Story'—spent the amount in 1,200 villages and focused on key areas, including education, healthcare, women and child development, skilling and livelihood, animal welfare, and environmental sustainability, according to a statement.

The foundation's reach continued to expand with the setting up of 6,044 Nand Ghars across 14 states, supporting 238,161 children and 178,620 women. 

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Upstox
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