Vedanta stock falls 1.6% as report says CFO Sonal Shrivastava seeks to quit months after joining firm

Zambia, last month, agreed to return control of Konkola Copper Mines (KCM) to Vedanta Resources, ending a row over the ownership of the assets that erupted in 2019 when authorities seized the mines.

Lusaka, Oct. 25 – Vedanta Ltd. stock fell 1.6% on Monday after a report said the mining conglomerate is likely to lose its third Chief Financial Officer in less than six months of their joining.

Sonal Shrivastava, who joined the company in June, informed Vedanta founder Anil Agarwal about her decision to leave last month, reported Bloomberg on Monday quoting people familiar with the matter.

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Zambia, last month, agreed to return control of Konkola Copper Mines (KCM) to Vedanta Resources, ending a row over the ownership of the assets that erupted in 2019 when authorities seized the mines. But many local analysts have questioned the rationale behind considering handing a struggling company to Vedanta that is, equally, barely able to manage its debt stock.

The government, which owns a 20% stake in KCM through ZCCM-IH, will allow Vedanta to resume control and operate KCM’s mines and smelter after the company renewed a pledge to invest more than $1.2 billion to increase output and repay outstanding debts.

Shrivastava’s resignation, if accepted, will come at a time when Vedanta’s holding company Vedanta Resources Ltd, faces about $3-billion of bond repayments in the next two years.

Agarwal is talking with finance professionals who had earlier stints in the group to replace her, and a decision is expected as early as this week, sources told Bloomberg.

At 11:30 am on Monday, Vedanta’s shares were trading 1.6% lower.

Recently, Vedanta announced a spin-off of its metals, power, aluminium and oil and gas businesses into separate listed entities and an overhaul of lucrative zinc unit as part of value creation and reducing debt load.

Explaining the rationale for the demerger, the Vedanta statement said it will simplify corporate structure with sector-focused independent businesses as well as provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India’s growth story.

“Demand for commodities is expected to rise exponentially as the country continues to build a world-class infrastructure and strives to achieve aggressive targets for the energy transition, which is highly mineral intensive,” the statement said.

“Once demerged, each independent entity will have greater freedom to grow to its potential and true value via independent management, capital allocation and niche strategies for growth. It will also give global and Indian investors the potential to invest in their preferred vertical, broadening the investor base for Vedanta assets,” it said.

The board approved six separate listed companies – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited.

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