Lenders unlikely to clear Anil Agarwal's Vedanta spinoff in hurry

To scrutinise rationale for recast, structural details, plans for each unit

Indian lenders are unlikely to clear the vertical split of BSE-listed Vedanta Ltd in a hurry, considering that the demerger would reduce the fungibility of cash flows across businesses and increase their volatility, according to analysts.

The demerger plan, which would result in six separate listed entities, would require approval from shareholders, lenders and other statutory bodies.

“We believe that a separate listing of different businesses would reduce the fungibility of cash flows across businesses and increase the volatility of cash flows. This could make lenders’ approval challenging, given the elevated debt levels, with net debt to earnings before interest, tax, depreciation,