Vedanta Ltd, a subsidiary of Vedanta Resources Limited, is one of the world’s leading diversified natural resource companies also known as Sesa Sterlite or Sesa Goa Limited is a mining company based in India, including its main operations in iron ore, gold and Aluminium mines in Goa, Karnataka, Rajasthan and also Odisha.
According to people familiar with the matter Vedanta Ltd. is planning to sell a minority stake in its Indian oil unit have stalled after a collapse in crude prices. The Mumbai-listed company backed by tycoon Anil Agarwal was seeking to raise more than $1 Billion by selling at least 20% of its Cairn Oil & Gas business, the people told.
The crash in energy prices and the Corona virus pandemic situation have made it difficult for the potential investors to gauge the Cairn’s business outlook, told by the people who asked not to be identified as the information is private. While the stake sale talks can resume when oil prices will stabilize, Vedanta may also explore other fundraising options to reduce its debt.
A representative for the firm’s London-based holding company Vedanta Resources Ltd, declined to comment on the status of the sale plans. As the representative said – The group is “well positioned” with sufficient liquidity to manage any temporary supply chain disruptions.
According to its website, Cairn is the country’s biggest private oil and gas producer contributing about 25% of the nation’s domestic crude oil production. It has interests in around 58 blocks in India.