Bulletin: Vedanta Can Absorb Proposed Acquisition; Execution Risks Remain

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Sept. 9, 2025--Vedanta Resources Ltd. can absorb the financial impact of its recent proposed acquisition. However, the transaction will slow Vedanta's deleveraging and expose it to execution risks in new business segments. The proposed acquisition of India-based conglomerate Jaiprakash Associates Ltd. is valued at INR170 billion (about US$ 1.9 billion) and will be funded by a combination of debt and free operating cash flow. It involves an upfront payment of INR38 billion, with INR25 billion-INR30 billion to be paid annually over the following five years. The acquisition will lower Vedanta?s ratio of funds from operations to debt by 1-2 percentage-points from our base case for fiscal year 2027

...September 9, 2025 This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Sept. 9, 2025--Vedanta Resources Ltd. can absorb the financial impact of its recent proposed acquisition. However, the transaction will slow Vedanta's deleveraging and expose it to execution risks in new business segments. The proposed acquisition of India-based conglomerate Jaiprakash Associates Ltd. is valued at INR170 billion (about US$ 1.9 billion) and will be funded by a combination of debt and free operating cash flow. It involves an upfront payment of INR38 billion, with INR25 billion-INR30 billion to be paid annually over the following five years. The acquisition will lower Vedanta's ratio of funds from operations to debt by 1-2 percentage- points from our base case for fiscal year 2027 (ending March 31, 2027). The ratio will likely be 25%- 26% for the period, providing sufficient buffer against our downside threshold of 20% for the rating (B+/Stable/--). The acquisition will add about...

Bulletin