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Sterlite Industries plunges on subsidiary's debt concerns
Edited by : AL CIRCLE
1 min read
Sterlite has fallen 15% over the last month on concerns around Vedanta Aluminium, which is Sterlite’s subsidiary. Vedanta Aluminium is currently making losses.
Mining major Sterlite Industries was the biggest loser on the Sensex and Nifty Friday. At 1250 hours, Sterlite traded with over 4 per cent losses on the Bombay Stock Exchange.
Sterlite has fallen 15 per cent in the last one month on concerns around Vedanta Aluminium, which is Sterlite’s subsidiary. Vedanta Aluminium, whose funding came from Sterlite Industries, is currently making losses.
Analysts said that the inter-corporate deposits from Sterlite remained high at Rs 8,940 crore.
The Street fears that Sterlite may be forced to convert part of debt into equity and the residual debt might be viewed as quasi-equity.
However, the management has assured analysts that its stake will not go beyond 30 per cent.
Mining major Sterlite Industries was the biggest loser on the Sensex and Nifty Friday. At 1250 hours, Sterlite traded with over 4 per cent losses on the Bombay Stock Exchange.
Sterlite has fallen 15 per cent in the last one month on concerns around Vedanta Aluminium, which is Sterlite’s subsidiary. Vedanta Aluminium, whose funding came from Sterlite Industries, is currently making losses.
Analysts said that the inter-corporate deposits from Sterlite remained high at Rs 8,940 crore.
The Street fears that Sterlite may be forced to convert part of debt into equity and the residual debt might be viewed as quasi-equity.
However, the management has assured analysts that its stake will not go beyond 30 per cent.
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