Will Vedanta benefit from massive diversification?
While the timing seems to be perfect as the economy is in a bounce-back phase, the investors and analysts are concerned about the debt of the parent company Vedanta Resources
Nevin John | December 15, 2020 | Updated 17:19 IST
Billionaire Anil Agarwal-led Vedanta group s aggressive diversification into new segments through acquisitions has raised investor confidence though there are worries related to debt. The metals and mining giant is in the fray to buy petroleum retailer BPCL and consumer electronics manufacturer Videocon. Besides, it plans to double the steel making capacity at the recently acquired bankrupt company Electrosteel.
All these three areas of business are new to Vedanta. It has submitted the expression of interest (EoI) for BPCL and is likely to qualify for giving financial bid. Private equity firms Apollo Global and I Squared Capital s arm Think Gas have also submitted EoIs.
BPCL bid evaluation meet on Tuesday; Vedanta, Apollo Global, I Squared Capital arm in race
Last week, an inter-ministerial meet was held to discuss the BPCL valuation process and setting of the reserve price.
Govt allows online bid submission for BPCL buy-out
A high-powered committee will on Tuesday evaluate preliminary bids received from mining-to-oil conglomerate Vedanta and private equity firms Apollo Global and I Squared Capital s arm Think Gas for buying the government s 52.98 per cent stake in BPCL, sources said.
Last week, an inter-ministerial meet was held to discuss the BPCL valuation process and setting of the reserve price.
On Tuesday, the panel will see transaction advisor Deloitte s report on the scrutiny of the three bids that were received at the close of bidding last month, sources in know of the development said.