Anil Agarwal’s Vedanta Ltd is evaluating the listing of its unit Cairn Oil and Gas as well as the sale of stake in some oil-producing blocks to fuel its growth ambitions, two people with direct knowledge of the matter told CNBC-TV18.
The metals and mining company, which won most of the oil blocks the Indian government auctioned in the past one year, has approached investment banks for a possible listing of Cairn to raise funds, they said. Both the persons did not want to be named. When contacted, a Vedanta spokesperson told CNBC-TV18 that the company is funding its capital expenditure internally.
Vedanta won 51 of the 87 oil and gas blocks auctioned by the government under its open acreage licensing policy. The company aims to invest $650 million in the new blocks and will pump in a total of $2.9 billion in the oil and gas sector over the next three years.
Vedanta is also exploring the option of monetising its oil-producing assets by selling minority stakes in them. Its block in Rajasthan (RJ-ON-90/1) is its largest oil-producing asset. Read More
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