Vedanta Resources will get greater access to cash flows from its Indian subsidiary Vedanta Ltd once its stake in the company increases after an open offer, S&P Global Ratings said on Tuesday.
Billionaire Anil Agarwal-led Vedanta Resources’s stake in Vedanta Ltd is likely to increase to 65% from 55%, after the open offer that closed on 7 April. Greater ownership will reduce dividend leakage and enhance its refinancing ability, S&P said.
“In addition, some surplus cash from the funding for the open offer has materially reduced refinancing risk for the India-based commodity conglomerate for fiscal 2022,” it added.
