For Vedanta, It Could Be The Third Exit In A Row, Amidst Re-structuring Plans (Image: x.com/Vedanta_Group)
Vedanta could lose its third Chief Financial Officer (CFO). This comes amidst its business restructuring plans and tanking of stocks. The stocks, upon the news being let out, tanked 2.56 percent, to Rs. 217.05 at mid-morning on October 23, from the previous Rs. 222.75.
The Indian multinational mining company, Vedanta Ltd. could lose its CFO as the company plans on ambitious restructuring. People who were in the know said that Sonal Shrivastava, who became part of Vedanta in June has informed the company, last month, on her decision to depart, reported the mint. Vedanta’s founder and Chairman, Anil Agarwal is in talks with professionals regarding a replacement, the sources added.
Vedanta is faced with $3 billion of bond repayments in the next two years. The company is currently engaging with its bondholders on a possible restructuring of terms for the approaching maturities. Ms. Shrivastava’s resignation, if taken up, would be the third after, G. R. Arun Kumar’s resignation in 2021 after a failed bid by the company to privatise and after that of Ajay Goel, who had left earlier in 2023.
The company had approved a plan to turn itself into six listed companies, last month. This has been undertaken, expecting to attract direct investors into key business segments of the company and to better the valuation of these segments. This move could also make the offloading of debt easier by putting up the segments for sale if needed, a move that the company has tried avoiding so far.
The founder and Chairman, Anil Agarwal, also known as the ‘metal man’ took over his father’s aluminium manufacturing business in the 1970’s and later spread wings into other segments. He built Vedanta into a conglomerate though many ambitious takeovers. But of now, the company is riddled with repayment of debt and plans to enter new business areas, which has made the company rethink on the restructuring and fresh fund needs.
