Vedanta – Incab: Paying a Premium for Scrap

Author: Viceroy Research Published on: December 4, 2025 Published in: Vedanta (NSE:VEDL)

December 5, 2025 – Vedanta Limited (VEDL) has committed to a 100% cash acquisition of Incab Industries Limited (Incab) for ₹577 crore ($64m), payable within 90 days and the significant cost of making the facilities operational. The acquisition adds to Vedanta Resources Limited’s existing liquidity crisis, already strained by the $206m payment obligation under the KCM Shareholders Agreement due December 31, 2025.

Despite no active operations, obsolete plant infrastructure, and a history of fires and sabotage, VEDL is paying more than 5x prior bids for Incab. Bondholders should view this as a further threat to debt servicing capacity.

Management at VEDL and VRL have consistently stated that VRL’s interest and maturities, as well as its investment commitments at KCM, will be handled by dividends and brand fees from VEDL. Per management statements and the KCM agreement, VRL requires:

$270m – $280m in H2 FY26
$500m in maturities in FY27
$400m in interest in FY27
$270m in investment in KCM in FY27

Vedanta just burned ₹577 crore ($64m) on Incab, a non-operational, loss-making asset, plus significant future capex obligations to return the assets to operation. This is cash that cannot be upstreamed to VRL, who has no alternative source of liquidity. This is a textbook liquidity drain at the worst possible time.

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