Tarang Bhanushali on Vedanta-Cairn India deal | vedanta Hot news | cairn india

Tarang Bhanushali on Vedanta-Cairn India deal | vedanta Hot news | cairn india

Tarang Bhanushali, Metal Analyst, IIFL in an interview with ET Now talks about the Vedanta-Cairn India deal.

For Vedanta to pay $8.5 to $9.6 billion for this buyout...is this going to be some bit of a pressure for the company?

Yes, if you look at the breakup; Sesa Goa would be holding 20% of the stake in Cairn and the rest would be through the PLC. The PLC is not as cash rich as we have seen. On the standalone basis the PSU is not cash rich as we have seen in Sterlite or Hindustan Zinc.

Yes, on the parent arm it would be a bit of strength but on Sesa Goa I do not think because it is already having a cash book of Rs 80.5 billion so outflow from that will not matter much for Sesa Goa but for Vedanta PLC it would stretching their balance sheet somewhat.

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