Vedanta To Lose Its Third CFO Since Billionaire Anil Agarwal Took Charge Of Firm: Reports

Vedanta Ltd is likely to witness its third chief financial officer (CFO) exit the company in as many years, coinciding with the mining conglomerate's ambitious restructuring under the leadership of billionaire Anil Agarwal, people aware of the matter were quoted as saying by Bloomberg.

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According to a Bloomberg report, Sonal Shrivastava, who became a part of the company in June, conveyed her intention to depart to Agarwal last month. Agarwal is currently in discussions with finance professionals who previously had associations with the group, and a decision on her replacement is anticipated to be reached as soon as this week.

Shrivastava's exit will compound Agarwal's challenges, given that his holding company, Vedanta Resources Ltd., is confronting approximately $3 billion in bond repayments over the next two years. The conglomerate has been in discussions with bondholders regarding potential adjustments to the terms of these forthcoming maturities. If her resignation is approved, it will come on the heels of G. R. Arun Kumar's departure in 2021, which occurred after an unsuccessful effort by Agarwal to privatize the Mumbai-listed company, as well as Ajay Goel's resignation earlier this year.

In the preceding month, Vedanta Ltd. greenlit a strategy to divide itself into six publicly traded companies. Agarwal envisions this strategic maneuver as a means to draw investors directly into its core enterprises, subsequently enhancing the valuation of individual components. This restructuring would additionally streamline the process of divesting certain assets, an approach the billionaire has refrained from for an extended period, aimed at alleviating the debt burden carried by the parent company.

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Agarwal, who assumed control of his father's enterprise producing aluminum conductors during the 1970s and subsequently diversified into trading scrap metal, expanded Vedanta Ltd. into a multifaceted natural resources conglomerate via a series of audacious acquisitions. Nevertheless, the requirement for funds to service the holding company's debts and aspirations to venture into novel sectors, including semiconductor manufacturing, compelled the magnate to divest a portion of the company's ownership and reevaluate the corporate framework of the group to attract new investments.