VRL Gets Third Upgrade from S&P in a Year of Re-rating for Vedanta Group

 Amidst a year of growth and multiple group-level re-ratings, Vedanta Resources Limited (VRL) received another upgrade from S&P Global on December 20. The agency upgraded VRL’s corporate family rating from ‘B-’ to ‘B’. With this, VRL’s rating by S&P has gone up by five notches from ‘CC’ in Dec 2023 to ‘B’ in Dec 2024.  

S&P said in its report that the upgrade comes after VRL obtained the minimum acceptances needed to close its consent solicitation exercise for 2028 bonds. “The stable outlook reflects our expectation that refinancing risks will be more manageable after the transaction given a newfound funding flexibility and improved capital market access,” the agency said in its report. 

“The stable outlook also reflects the company's sound underlying operations, which should support internal cash generation and refinancing efforts,” it added. 

The S&P upgrade follows a successful consent solicitation exercise initiated by VRL. In this, VRL's bondholders were requested to deliberate on the company amending the terms and conditions of its 13.875% bonds due in 2028. The proposal which was supported by 99.53% of early voting bondholders (by the December 16 deadline)

will provide VRL with increased debt headroom, helping it efficiently manage its debt maturity profile and improve its capital structure. 

VRL’s steady focus on deleveraging and strengthening its balance sheet also translated into upgrades by other major rating agencies. Moody’s significantly improved its outlook on VRL’s bonds moving its ratings by 4 notches from “Ca2” to “B3” during the year. It cited growing investor confidence as the underlying reason for its consecutive upgrades.  

The group-level re-rating also extends to VRL’s Indian subsidiary, Vedanta Ltd. (VEDL), which received a series of upgrades in the past few quarters. Earlier this month, CRISIL upgraded its ratings on Vedanta’s long-term bank facilities and debt instruments to ‘AA’ from ‘AA-’ while reaffirming the short-term rating at A1+. Similarly, ICRA upgraded Vedanta Limited's long-term credit rating by a notch to AA in September, citing the company’s strengthened credit profile. 

All three agencies highlighted Vedanta’s commitment to deleveraging its balance sheet, reduced financing costs, expected increase in profits in the near term, lower cost of production, and its greater ability to withstand cyclicality in the commodity business as reasons for this vote of confidence. 

VRL’s focus on deleveraging has reduced debt by ~$4.7 billion in the past two years, as Chairman Anil Agarwal shared in a letter to shareholders in November this year. The upgrades also reflect Vedanta’s ability to consistently tap bond markets. In the past four months, VRL has raised US$2 billion through bond issuances, achieving ~ 300 bps interest cost reduction and pushing out its debt maturities considerably, which has helped strengthen the company’s capital structure considerably.

Greaves Electric Mobility Limited files DRHP with SEBI; aims to raise Rs. 1000 crore via fresh issue

 Greaves Electric Mobility Limited (GEML), known for its Ampere, Eltra, and Ele electric vehicles, has filed a draft red herring prospectus (DRHP) with SEBI to raise funds through an IPO. The IPO includes a fresh issue of equity shares worth up to Rs. 1000 crores and an offer for sale of about 18. 9 crore shares by selling shareholders. Greaves Cotton Ltd. will sell 5. 1 crore shares, and Abdul Latif Jameel Green Mobility Solutions DMCC will sell 13. 8 crore shares. 

GEML plans to use the fresh issue funds for technology development, battery assembly, and expanding manufacturing capacities at its subsidiaries. The company offers electric two-wheelers and three-wheelers for both personal and commercial markets. As of September 30, 2024, GEML had three manufacturing facilities and reported revenue of Rs. 611. 8 crores for Fiscal 2024. Motilal Oswal, IIFL, and JM Financial are the lead managers for the IPO.

Condolence on Demise of Former PM Dr. Manmohan Singh: Statement by Mr. Sajjan Jindal, Chairman, JSW Group

Deeply saddened by the passing of Dr. Manmohan Singh ji, former Prime Minister of India and the visionary leader behind India’s economic liberalization. A statesman of humility and wisdom-India owes him a debt of gratitude.

Anil D. Ambani Statement: A Heartfelt Farewell

Dr. Manmohan Singh’s life was a testament to humility, wisdom, and service to India. As the Guru Granth Sahib says, ‘Nanak Naam Chardi Kala, Tere Bhane Sarbat Da Bhala’—‘With the Divine Name comes eternal optimism; by Your will, may there be well-being for all.’ His vision and integrity will inspire generations. A guiding light has left us.” – Anil D. Ambani

Banking on a Brighter Future: Equitas SFB Impacts 1.45 Crore Lives

Equitas Small Finance Bank, a leading SFB in India, celebrates its commitment to financial inclusion and making a social impact. Since it started, Equitas has focused on empowering people and communities beyond just banking, making efforts in various social and economic initiatives. 

Mr. P N Vasudevan, MD & CEO, highlighted the bank's mission to empower lives and build sustainable communities. He emphasized the positive changes brought by the Equitas Development Initiatives Trust (EDIT), which receives 5% of the bank's profits each year. EDIT has helped restore vision for thousands, provided quality education, and trained many women in skills. Equitas aims to fight poverty and inequality while looking forward to a brighter future. 

Over recent years, Equitas has achieved significant milestones, including 31 lakh+ eye care beneficiaries, 3 lakh+ lives affected by Job Fairs, 7000+ students in Equitas Gurukul Schools, 6 lakh+ women trained, and 5000+ pavement dwellers rehabilitated.

Schaeffler India Appoints Sharad Bhatia to Spearhead Vehicle Lifetime Solutions

Schaeffler India has appointed Mr. Sharad Bhatia as Head of Vehicle Lifetime Solutions (VLS), effective 2 December 2024. In this role, Mr. Bhatia will lead efforts to enhance Schaeffler India’s involvement in the mobility ecosystem, focusing on sustainable and advanced motion technology solutions. 

Mr. Bhatia has over 24 years of experience in the automotive parts industry. He has successfully built strong business platforms and launched innovative products to meet changing customer demands. His background in the aftermarket service parts sector is particularly beneficial for Schaeffler India, especially as the company grows its VLS segment aimed at improving vehicle longevity and sustainability through advanced technology. 

Mr. Bhatia has worked in various multinational organizations in markets including Indonesia, China, Singapore, and Italy. Commenting on his appointment, Mr. Harsha Kadam, MD & CEO of Schaeffler India, expressed excitement about Mr. Bhatia joining the company, highlighting his extensive experience and alignment with strategic goals for growth in India. 

Mr. Bhatia himself is enthusiastic about his new role, aiming to expand the aftermarket solutions portfolio by utilizing advanced motion technology to add value and foster innovation. He plans to work closely with the Schaeffler India team to enhance the VLS division and offer customers sustainable and reliable solutions. 

Mr. Bhatia holds a bachelor's degree in mechanical engineering from Pune University and an Executive MBA from IIM Calcutta, along with a certification in advanced technology for E-mobility from IIT Delhi.

The 3rd edition of the India Pharma Week

Chennai, December 2018: UBM India, India's leading B2B exhibition organizer, is all set to bring in the third edition of the widely appreciated India Pharma Week, a week-long celebration packed with avant-garde events from 9th – 14th December, alongside the 12th edition of its flagship expo CPhI and P-MEC India. South Asia’s largest Pharma event will be held for the first time at the world class venue of the India Expo Centre, Greater Noida, with all its attendant facilities, moving away from the commercial capital of Mumbai.

Originally Incepted in 2006, the CPhI & P-MEC India exhibition has grown remarkably larger over the years with exhibitors and visitors from Indian and overseas engaging over significant levels of business. It has been approved and comprehensively assisted in its endeavors by governing bodies such as Pharmexcil, CIPI and IDMA. This year's edition will witness participation from more than 1,600 exhibitors from over 42 countries. Special pavilions by Pharmaceuticals Export Promotion Council of India (Pharmexcil), China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE) and China Council for the Promotion of International Trade (CCPIT) will form an intrinsic part of the expo.

Speaking on IPW 2018, Mr. Yogesh Mudras, Managing Director, UBM India said, “I am delighted to announce the third edition of the weeklong India Pharma Week -- an unrivalled offering to the world of exhibitions -- along with the CPhI & P-MEC India, UBM’s flagship engagement platform, and the world’s leading Pharmaceutical networking event in the Delhi-NCR region at a world class venue that an elite congress such as the one at IPW richly deserve. The shift to the region, in close geographical proximity to the Centre, policy makers, consulates and government bodies will enhance our community building efforts. Apart from the business, and the medley of captivating events, key discussion areas will include ‘Growth of Indian Pharmaceutical industry: Vision 2020’, ‘Transforming the Pharma industry architecture through collaborations’, and ‘Strategies to strengthen regulatory policies in India’ among many others, for the community to ruminate and act upon”.