Vedanta Promoter Sells $250-Million Stake In Block Deal As Group Steps Up Deleveraging

Vedanta Group's promoter entity Twin Star Holdings sold about 73 million shares in Vedanta Ltd for Rs 2,149 crore (USD 250 million) in a block deal on Tuesday, with the proceeds expected to be used to reduce debt at parent company Vedanta Resources Ltd (VRL), people familiar with the matter said.

The shares were sold at Rs 292 apiece, according to the sources, who said the transaction forms part of the group's broader effort to accelerate deleveraging at the holding-company level following the planned demerger of Vedanta's businesses.

"With five listed entities and different capital structures, the group is now looking at accelerated deleveraging at the holding-company level. This deleveraging is coming ahead of schedule," one of the sources familiar with the matter said.

Following the sale, Twin Star continues to hold about 40 per cent of Vedanta Ltd, while overall promoter ownership remains around 56 per cent, the source added.

Vedanta declined to comment on the block transaction or confirm whether Twin Star was the seller.

The stake sale comes as billionaire Anil Agarwal-led Vedanta Group seeks to simplify its balance sheet and reduce refinancing risk at VRL, which has long been closely watched by investors because of its debt obligations.

According to people familiar with the company's plans, VRL is targeting a consolidated refinancing of its remaining holding-company debt rather than pursuing a series of smaller liability-management exercises.

The strategy would replace large bullet repayments - historically viewed by investors as a key refinancing risk - with amortising debt structures designed to spread repayments over longer periods and better align them with operating cash flows, one of the sources said.

VRL's net debt has nearly halved over the past four years, falling to about USD 5.2 billion from roughly USD 9.7 billion, according to the sources. At the operating company level, Vedanta Ltd reported a net debt-to-EBITDA ratio of 0.95 times as of March 2026, compared with 1.22 times a year earlier.

The company has also lowered its average borrowing costs to about 8.9 per cent through refinancing initiatives and debt maturity optimisation, the sources said.

Over the past 18 months, VRL has tapped international debt markets multiple times, raising about USD 3.6 billion through four US dollar bond issuances since September 2024. Its most recent USD 1.1 billion refinancing transaction drew orders worth about USD 3.4 billion, while a separate USD 500 million issuance attracted demand exceeding USD 1.6 billion, according to the sources.

Market participants said the group's ongoing demerger could further reshape its capital structure by allowing individual businesses to manage their own balance sheets and funding requirements.

"The demerger is a fundamental reset of how the Vedanta group accesses capital," one source said. "Previously, a single conglomerate carried the debt burden of all its businesses on one balance sheet."

The source added that, following the demerger, individual businesses could seek external investors and pursue independent capital allocation strategies. The group's oil and gas business is expected to emerge debt-free, while the iron and steel unit is projected to carry minimal debt.

ALSO READ: Newly Listed Vedanta Power Eyes Hydro, Battery Storage, Nuclear Energy For Future Growth

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.