Mumbai: Vedanta Ltd is trying to increase its inter-corporate loans limit to Rs.eighty,000 crore from the prevailing Rs.60,000 crore, the organization said on Friday.
In a postal poll word sent to exchanges on Friday, the employer said it became in search of shareholders’acclaim for an “increase in limits for Inter-company Loans, Investments and ensures and security inconnection with mortgage(s) from Rs.60,000 crore to Rs.80,000 crore.”
The resolution, if approved, will allow Vedanta to lend, make a guarantee towards loans, provide securityand make investments in its organization groups, each in India and foreign places to the restrict of Rs.80,000 crore. it’ll additionally allow Vedanta to borrow from its subsidiaries.
The suggestion comes a day after Vedanta’s unit Cairn India Ltd extended the maturity length of a $1.25 billion loan it gave to Vedanta subsidiary THL Zinc Ltd (TZL) by means of two years. The loan became due in July 2016.
TZL is the protecting company of the Vedanta organization’s international zinc business, with property in South Africa and Namibia.
Vedanta had cash and liquid investments well worth Rs.52,666 crore on its books as of 31 March 2016. It had a consolidated debt of Rs.77,952 crore.
On Friday, Vedanta shares closed at Rs.98 apiece, 4.sixty two% lower from its preceding close of Rs.102.75, while the benchmark Sensex closed 1.17% lower at 25,489.fifty seven factors.