Sterlite Industries has increased debt funding to Vedanta Aluminum Limited by INR 674 crore or by 8% in the Q3 on a sequential basis. With this the total debt of Sterlite in VAL has reached close to INR 10,000 crore.

Sterlite said that the inter corporate deposits to Vedanta Aluminum in the Q3 rose by INR 674 crore and have now reached a total of INR 9,612 crore. The number was at INR 8,939 crore at the end of Q2 of the current fiscal. Apart from this, Sterlite has an equity investment of INR 563 crore in VAL.

Sterlite has 29.5% stake in VAL and the rest 70.5% is held by Vedanta Resources. Vedanta Resources has an equity investment of INR 1,391 crore in VAL. Of the total loan of INR 4,586 crore from Vedanta Resources, VAL repaid debt totaling INR 2,287 crore in the Q3 thereby cutting its debt exposure from the parent by half.

Sterlite said that the INR 674 crore funding is short term and VAL will return the money in the current quarter itself. Some portion of the INR 9,612 crore loan would be converted into equity in such a way that it did not change its 29.5% shareholding in VAL. For this, the company would go ahead with capital restructuring to reduce the debt to equity ratio to 2:3 from the current 14:1.

(Sourced from www.business-standard.com)