Vedanta Shares Rise 2% After Moody’s Rating Upgrade and Bond Issuance

On November 28, 2024, Vedanta’s share price traded 2.06% higher at ₹454.90 at noon on the NSE. The shares opened at ₹450, higher than its previous close of ₹445.70. This increase followed Moody’s upgrade of Vedanta Resources Ltd’s (VRL) corporate family rating, driven by the company’s successful liability management exercises.

Moody’s Upgrade Reflects Financial Strength

Moody’s upgraded Vedanta Resources Ltd’s corporate family rating from B3 to B2 and raised the rating on its senior unsecured bonds to B3 from Caa1.

According to Nidhi Dhruv, vice president at Moody’s Ratings, the upgrade reflects the company’s successful liability management efforts, including raising USD 800 million through its second bond issuance since September 2024.

Vedanta Resources Ltd Secures Funds

UK-based Vedanta Resources, the parent company of mining giant Vedanta, announced on Tuesday that it raised USD 800 million from global investors through a new bond issuance. The funds will be used to prepay a portion of the company’s debt maturing in 2028.

This bond issue is part of Vedanta’s ongoing efforts to reduce its debt and strengthen its balance sheet. By tapping into the bond markets, the company aims to improve its capital structure and lower financial costs as part of its broader liquidity management strategy.

Loan sanctions also saw a significant jump, increasing nearly four times to ₹8,723.78 crore compared to ₹2,852.05 crore in the second quarter of the previous fiscal year.

About Vedanta Ltd

Vedanta’s primary operations are concentrated in India, where it is a key player in the country’s natural resources sector. The company is known for its commitment to sustainable development and responsible resource extraction, with a strong focus on environmental conservation, community welfare, and corporate governance.

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