Vedanta's Rs1.54-trn semicon foray won't chip away at liquidity: S&P
Any potential credit impact of the planned investments in the semiconductor business will depend on the details of the funding plan, which have yet to emerge
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This is because the company has reiterated that the $20 bn related investment will be carried out outside of Vedanta Resources. The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd, said global rating agency
New Delhi: Mining mogul Anil Agarwal-led Vedanta Resources' credit profile is unlikely to be weighed down by the group's planned Rs1.54 lakh crore foray into semiconductor manufacturing, S&P Global Ratings said on Monday.
"This is because the company has reiterated that the $20 billion related investment will be carried out outside of Vedanta Resources. The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd," it said.
Vedanta and its partner and Taiwanese electronics manufacturing giant Foxconn last week signed a pact with the Gujarat government for setting up a semiconductor factory in Gujarat. Semiconductor chips, or microchips, are essential pieces of many digital consumer products - from cars to mobile phones and ATM cards. The Indian semiconductor market was valued at $27.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of nearly 19 per cent to reach $64 billion in 2026.
