Vedanta shares in focus as parent eyes US listing for Zambian copper unit
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Shares of Vedanta Ltd are expected to be in focus on Thursday following reports that its parent, Vedanta Resources , is considering a U.S. public listing for its Zambian unit, Konkola Copper Mines (KCM), to raise around $1 billion for mine development.The London-based parent, owned by Indian billionaire Anil Agarwal , has engaged Barclays and Citigroup to advise on the potential IPO, according to three sources cited by Reuters. The discussions are at a preliminary stage, and no timeline has been finalized.Vedanta is evaluating New York as a possible listing venue for KCM, which it claims hosts one of the world's highest-grade copper deposits, along with reserves of roughly 400,000 tons of cobalt—both critical for clean energy and electric vehicle infrastructure.While a spokesperson declined to comment on the specifics, Vedanta Resources confirmed it is exploring various financing options. 'We continue to evaluate a range of financing options, including internal accruals, debt instruments, and equity, as we invest and grow globally,' the spokesperson told Reuters.The fundraising aligns with Vedanta's plan to ramp up copper production to about 300,000 metric tons annually over the next five years. Output at KCM had declined amid a long legal dispute with Zambia's former government, which had placed the unit under provisional liquidation citing underinvestment.Since regaining control last year, Vedanta has secured short-term funding, started repaying dues to local suppliers and power companies, and increased community investments in the region.Vedanta has also incorporated a U.S.-based entity, Global Transition Resources Inc., which, according to a LinkedIn post, produces copper, cobalt, and gold in Africa. However, Reuters could not confirm whether this entity would house the KCM assets if listed in the U.S.Past attempts to attract strategic investors for KCM have fallen through. A planned stake sale to UAE-based International Resources Holding collapsed over valuation issues, while a separate effort to sell a minimum 30% stake in KCM did not materialize.Vedanta Resources owns 80% of KCM, with the remaining 20% held by Zambia's state investment arm, ZCCM-IH.The parent is also undergoing a broader restructuring to split its oil-to-metals business into five independently listed entities, a move that could shape its future financing plans.Vedanta Ltd shares have gained 11% over the past year and closed 1.3% higher at Rs 418.30 on Wednesday, April 23, on the BSE.
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