Vedanta Resources is raising up to $2.5 billion through short term loans facility from banks and money lenders to buy Vedanta Ltd stock shares held by its public ownership. Vedanta Resources is owned by Londen Based Billionaire Anil Agarwal.
Before the Company started to raise funds to buy complete ownership of its subsidiary Company Vedanta Limited, its stocks were already proposed to be delisted from Indian exchanges.
JP Morgan and Barclays are the two big names from Global Banks that are likely to fund this purchase though they have not made any official comment on this so far. Top Global Lenders, Standard Chartered Bank and Citi will provide loans for 3 months and 12 months of maturity period to the company, according to sources.
The company will provide covenants as security for availing the stipulated loans. These Covenants include money from upstream dividends of various firms of the group owned by Anil Agarwal.
On May 18, considering the due diligence report by State Bank of India (SBI) Capital, Vedanta Board had taken the decision of approving delisting of locally listed holding Company. After buying Vedanta Limited Stock shares from Public owners, the company will be made Private.