Vedanta Resources plans to set up a $10bn fund for acquiring state-owned funds and has already received interest from sovereign wealth funds. The corpus will be floated once the government invites bids for firms like BPCL or Shipping Corporation of India (SCI). Vedanta has completed due diligence of BPCL while the invitation of the price bid for sale of the government’s stake in SCI was postponed. The government has not indicated any date for invitation of price bids for BPCL or SCI. Chairman Anil Agarwal in an interview said that the fund plans to have a 10Y life span using a PE-type strategy where it buys into companies, boosts profitability before seeking an exit. He added that the fund will be made of Vedanta’s own resources and outside investment.
Vedanta’s dollar bonds were trading stable with its 9.25% 2026s at at 90.13, yielding 12.3%.
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