ET reported that Vedanta Aluminium Limited is planning to raise USD 500 million to repay debt.

The company plans to buy government's stake in Balco and Hindustan Zinc which it currently owns with stakeholding of the government. The company has invested in 0.5 million tonne per annum aluminum smelter and 1215 MW captive power plant at Jharsuguda, Orissa. In addition to this construction of 1.1 million tonne per annum aluminium smelter expansion project at Jharsuguda is under process and it intends to expand the fully integrated aluminum smelting capacity to around 2.6 million tonne per annum in near future.

Incorporated in 2001, VAL is a producer of metallurgical grade alumina and other aluminium products catering to the wide spectrum of industries. The firm operates 1 million tonne per annum Greenfield alumina refinery and an associated 75 MW captive power plant at Lanjigarh in the state of Orissa.

Post the Sesa Goa Sterlite Industries merger, the group is under restructuring exercises and plans to integrate all the Indian assets under one structure, Sesa Sterlite. This would also bring the group’s holdings in Cairn India, Hindustan Zinc, Balco and Vedanta Aluminium under Sesa Sterlite.

The company has a debt of USD 4 billion. Sterlite Industries increased its debt exposure in the company earlier this year by 8%, taking the total debt of Sterlite in VAL close to R10000 Cr. In June, holding firm Vedanta Resources Plc acquired 24.5% stake in Raykal Aluminium for INR 200 crore.

In the space, Hindalco raised INR 1500 croreCr through NCD issue in June this year. Nippon Investment infused around INR 6.12 crore in Parekh Aluminex in July and last month Sequoia Capital exited Ess Dee Aluminium selling around 6.5% stake and raising INR 28.25 crore.

Source - Economic Times

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