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Vedanta – ESL’s Debt Raise Shows Lack of Options

Author: Published on: Published in: Vedanta (NSE:VEDL)

December 2, 2025 – On November 28, 2025, it was reported that Vedanta Limited’s (VEDL) subsidiary ESL Steel (ESL) will raise ₹2,000 crore ($223m) through 10%-12% non-convertible debentures being marketed as routine corporate refinancing.

This raise lands days before VEDL’s parent Vedanta Resources Ltd (VRL) must meet its $206m December funding obligation for Konkola Copper Mines (KCM), funds it does not have.

Vedanta is raising debt at ESL precisely because ESL cannot repay or service it. ESL is now a disposable funding vehicle which allows the Group to funnel the proceeds upstream to meet VRL’s liquidity deadlines. The Group’s much-promoted deleveraging strategy has collapsed.

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