Archive · 7 Aug 2026
Vedanta Aluminium to raise ₹13,500 crore bank loan after split
Vedanta is a very big company in India that makes things like aluminium, oil, and power.
It used to be one giant company, but it split into five smaller companies so each part could run on its own.
One of those new companies, Vedanta Aluminium, makes the metal aluminium.
Now Vedanta Aluminium wants to borrow a huge amount of money from banks — about ₹13,500 crore, which is a gigantic number.
Banks like Axis Bank, HDFC Bank and ICICI Bank are lending this money.
The company will use the money to pay off older debts it had from when everything was still one big company.
It will pay the money back over six and a half to seven years, with interest.
A ratings agency, Crisil, says the company is doing well and gave it a strong rating.
This shows that the banks and experts trust the new company to manage its money.
Vedanta Aluminium Metal Ltd plans to raise about ₹13,500 crore (₹135 billion, roughly $1.4 billion) in its first major local-currency borrowing after the Vedanta Group split.
Axis Bank has signed a ₹55 billion loan agreement, while HDFC Bank and ICICI Bank are expected to provide about ₹80 billion collectively, with Axis Bank leading syndication.
The loans carry a tenure of six-and-a-half to seven years with interest rates expected around 7.9%–8%.
The proceeds will primarily be used to refinance existing debt Vedanta Aluminium inherited from the group's earlier integrated corporate structure.
Following the court-approved demerger, Crisil upgraded Vedanta Aluminium's rating to AA+ with a stable outlook.
- Who
- Vedanta Aluminium Metal Ltd, a unit of the Vedanta Group, along with lenders Axis Bank, HDFC Bank and ICICI Bank, with Axis Bank leading loan syndication.
- What
- Raising about ₹13,500 crore (₹135 billion) in bank loans, primarily to refinance debt inherited from the group's earlier integrated corporate structure.
- When
- Following the Indian court's approval of the restructuring (in December); the separated businesses began trading on stock exchanges in June.
- Where
- India.
- Why
- To establish independently financed businesses, improve financial flexibility and reduce debt levels after the demerger.
- Company
- Vedanta Aluminium Metal Ltd
- Total Loan Amount
- ~₹13,500 crore (₹135 billion / about $1.4 billion)
- Axis Bank Agreement
- ₹55 billion
- Expected HDFC Bank + ICICI Bank Loan
- ₹80 billion (collectively)
- Loan Tenure
- 6.5–7 years
- Expected Interest Rate
- 7.9%–8%
- Crisil Rating
- AA+ with stable outlook
- RBI Bank Credit Growth
- 17.7% year-on-year to ₹217.3 lakh crore as of July 15
