Mining conglomerate Vedanta Ltd will seek shareholders nod to raise its limit of inter-corporate loans to Rs 80,000 crore.
The firm led by billionaire Anil Agrawal has called for a postal ballot to seek approval from shareholders.
“Approval to increase in limits … for inter-corporate loans, investments and guarantees and security in connection with loan(s) from Rs 60,000 crore to Rs 80,000 crore,” it said in a regulatory filing.
Explaining the rationale, it said: “The company being the flagship and holding company for various subsidiaries/ Wholly Owned Subsidiaries and associate companies, extends financial support in the form of investments, loans and guarantees/ security to various group companies and also in other entities from time to time as per decision of the Board.”
Vedanta shareholders have through postal ballot approved a limit of Rs 60,000 crore for making loans, investments, guarantees and security from time to time in October 2014, it added.
Excluding exception items, the net profit stood at Rs 955
Anil Agarwal-led Vedanta reports net loss of Rs 11,181 crore in Q4
“The company may have to make further inter-corporate investments, loans, guarantees or security in connection with a loan and hence, it deems appropriate to increase the limit from Rs 60,000 crore to Rs 80,000 crore,” Vedanta said.
The development comes a day after Cairn India extended by 2 years the repayment of a controversial $1.25 billion loan (nearly Rs 8315.9375 crore) it had extended to its parent group firm, which follows delay in merger
Vedanta Group had in 2011 acquired Cairn India from its
Cairn can merge with Vedanta only after paying for shares I-T dept has attached: Govt
of Cairn India with its parent Vedanta Ltd that would have led to the $1.25 billion loan being written off.