InvestorQ : What happened to the plan of Vedanta to sell a stake in its India oil business to raise funds?
Anjana Aiyar made post

What happened to the plan of Vedanta to sell a stake in its India oil business to raise funds?

Answer
user profile image
Arya Nanda answered.
4 months ago


For now Vedanta has stalled its plans to sell a minority stake in its Indian oil unit due to a sharp collapse in oil prices and limited likelihood of getting a good price in the market. Vedanta, owned by Anil Agarwal, planned to raise $1 billion by selling at least 20% of the Oil & Gas business; which Vedanta had acquired from Cairn India. However, the sudden crash in energy prices and the Covid-19 pandemic made it difficult to get a buyer at a good price. For now, Vedanta may also explore other options to reduce its overall debt. Cairn fields currently contribute 25% of the nation’s domestic crude oil production from its interests in 58 blocks in India.