Vedanta Resources plans to set up $10 billion fund to acquire state owned firms
- ByTejika Bajaj | January 24, 2022
Vedanta Resources Ltd has recently revealed its plan to set up a $10 billion fund to acquire numerous state owned firms. It has attracted interest from multiple sovereign wealth funds and the corpus would be floated off once the government calls upon firms such as BPCL or Shipping Corporation of India (SCI).
Metals and mining magnate Anil Agarwal’s group has expressed interest to acquire government stake in Bharat Petroleum Corporation Ltd (BPCL) and SCI worth over USD 12 billion.
The company has revealed that the fund would be created out of Vedanta’s own resources and outside investment. Furthermore, the chairman has re-established the fact that the group has had a tremendous response for this fund, especially from the sovereign wealth funds.
The idea is to create a fund with a 10-year life span that will use a private equity-type strategy, buying into companies and boosting their profitability before seeking an exit.
“As soon as the government starts coming out with a disinvestment programme, in no time we can raise. Nobody wants to put in money and pay fees and other costs. All is ready and as soon as the government activates the bidding process, we will move forward. Money will not be a problem,” Anil Agarwal, Chairman of Vedanta Resources said.
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