Company’s Chairman Anil Agarwal has said that when the Government of Bharat Petroleum Corporation Ltd. (BPCL) or Shipping Corporation of India (SCI) at the time the fund will be launched.
Metals and mining tycoon Anil Agarwal has shown interest in acquiring the government’s stake worth over $12 billion in BPCL and SCI.
“We are creating a $10 billion fund,” Agarwal said in an interview.
He said the fund would be created from Vedanta’s own resources and external investments. “We have received an overwhelming response to this fund, especially from Sovereign Wealth Funds.”
Agarwal said the idea behind this is to create a corpus with a tenor of 10 years. It will use a private equity type strategy. This fund will invest in companies and increase their profits. After that he will leave the company.
Agarwal had earlier said that Vedanta will create a $10 billion fund with London-based Centricus to invest in stake purchases in public sector undertakings. Centricus manages approximately $28 billion in assets.
“They all want me to be the chairman,” Agarwal said.
Vedanta has completed the investigation work for BPCL. At the same time, the government has postponed the price bid for the SCI this month. The government is yet to say by when it will seek price bids for BPCL and SCI.
“We will bring this fund as soon as the government starts the disinvestment programme. No one wants to pour money or charge fees and other costs. Everything is ready and as soon as the government bids start, we will go ahead with it. Money is not a problem.”
Agarwal is credited with turning a small scrap metal business into London-headquartered Vedanta Resources. He has invested many times in government companies and made profits. Agarwal acquired Bharat Aluminum Company (BALCO) in 2001. It was then acquired by loss-making Hindustan Zinc in 2002-03.
Vedanta had bought a 51 per cent controlling stake in Sesa Goa from Mitsui & Co in 2007. In 2018, Vedanta had succeeded in acquiring Electrosteel Steels Ltd. (ESL), leaving behind companies like Tata Steel.
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