Vedanta denied rumors of exiting its steel business by confirming their prioritization of the expansion of Electrosteel Steels Ltd (ESL) from 1.5mn tonnes to 3mn tonnes. This comes after an ET report had mentioned that Vedanta was rumored to be selling-off ESL to focus on its core mining and industrial business. It was said that Vedanta was looking to deleverage its balance sheet, which saw net debt rise 20% QoQ to INR 321bn ($3.9bn) as per its results ended September. Vedanta plans to invest $300-350mn in doubling ESL’s capacity out of the $2bn capex target it announced for FY 2023.
Vedanta’s USD 9.25% 2026s were up over 1 point to trade at 64.8 cents on the dollar.
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