Vedanta Raises Rs 2,500 Crore via NCDs

On April 4, 2024, Vedanta Limited announced that the board of directors approved raising to Rs. 2500 Crore from Non-Convertible Debentures on a private placement basis in a press release. The committee had approved raising 2,50,000 senior, secured, rated, listed, redeemable, non-convertible debentures (NCDs) of a face value of Rs. 1,00,000 each. The aggregate amount raised from these debentures, thus, would be Rs.2,500 Crore. On June 27, 2024, Vedanta Limited informed timely payment of interest to its debenture holders and that secured, unrated, unlisted, redeemable, Non-Convertible Debentures of face value Rs. 1,00,000/- each aggregating up to ₹ 2,500 Crores was raised, in an exchange filing. The company is also set to host its 59th Annual General Meeting on 10 July 2024.

About Vedanta Limited:

Headquartered in Mumbai, Vedanta Limited is a public company with its foundation in 1979. Formerly known as Sterlite Industries, the company came forth to become a multinational mining company with its main operations in iron ore, gold, and aluminum mines. On March 24, 2024, Vedanta Limited announced $6 billion a $6 billion investment across various business verticals, including aluminum, zinc, iron ore, steel, and oil and gas, aiming to add at least $2.5 billion to its annual EBITDA. The investment is part of a strategy involving over 50 active projects expected to generate additional revenues of over $6 billion, with plans for a significant vertical split leading to the creation of five newly listed companies.

Company’s Financial Performace:

The company, in FY24, recorded its second-highest annual consolidated revenue in a year of Rs. 141,793 Crore. It also recorded its second-highest EBITDA of Rs. 36,455 crores, up 3%,   mainly driven by higher volume and structural cost-saving initiatives across businesses. With the recent announcement of raising Rs. 2,500 Crore through NCDs, shares of Vedanta rose by 3.6 percent at Rs 458.75 on the BSE in Friday’s intraday deals and is trading near its 52-week high of Rs.506 per share.

Conclusion: Vedanta Limited with the fundraising indicates the company’s focus on active management of its debt structure and cash flow, ensuring timely interest payments and maintaining investor confidence

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