Vedanta's Rs1.54-trn semicon foray won't chip away at liquidity: S&P
Any potential credit impact of the planned investments in the semiconductor business will depend on the details of the funding plan, which have yet to emerge
Acting CFO Ajay Goel resigns from Vedanta with effect from April 9
This is because the company has reiterated that the $20 bn related investment will be carried out outside of Vedanta Resources. The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd, said global rating agency
New Delhi: Mining mogul Anil Agarwal-led Vedanta Resources' credit profile is unlikely to be weighed down by the group's planned Rs1.54 lakh crore foray into semiconductor manufacturing, S&P Global Ratings said on Monday.
"This is because the company has reiterated that the $20 billion related investment will be carried out outside of Vedanta Resources. The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd," it said.
Vedanta and its partner and Taiwanese electronics manufacturing giant Foxconn last week signed a pact with the Gujarat government for setting up a semiconductor factory in Gujarat. Semiconductor chips, or microchips, are essential pieces of many digital consumer products - from cars to mobile phones and ATM cards. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of nearly 19 per cent to reach $64 billion in 2026.
