Vedanta Resources Ltd. - Deal or No Deal?

Lakshmi Iyer, CFA

Credit

<p>The reverse book building in connection with the privatization of <a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> commenced yesterday. In this Insight, we present our views on implications for bondholders. We feel there is significant upside in the bonds even if the deal happens at a higher price. We also provide our views on what levels of additional debt will be a deal breaker, given the overall <a href="https://www.smartkarma.com/entities/vedanta-resources-limited" target="_blank" data-smartkarma-citation="entities:22202:1" rel="noopener">Vedanta Resources (VED LN)</a> balance sheet.</p><div class="content-highlight"><p><em>Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.</em></p></div>

The reverse book building in connection with the privatization of Vedanta Ltd (VEDL IN) commenced yesterday. In this Insight, we present our views on implications for bondholders. We feel there is significant upside in the bonds even if the deal happens at a higher price. We also provide our views on what levels of additional debt will be a deal breaker, given the overall Vedanta Resources (VED LN) balance sheet.Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.

Vedanta - Ongoing Privatization - Implications for Bondholders