Vedanta kicks off major fundraising with QIP, sets floor price at Rs 461.26 per share
The issue price will be determined by the company in consultation with the book running lead manager appointed for the issue, the company said in a disclosure to the exchanges.
- Jul 15, 2024,
- Updated Jul 15, 2024 10:08 PM IST
Mining giant Vedanta on July 15 said the committee of directors of the company has approved the launch of a qualified institutional placement (QIP), setting the floor price at Rs 461.26 per equity share.
“We further wish to inform you that the ‘relevant date’ for the purpose of the issue is July 15, 2024, and accordingly, the floor price in respect of the aforesaid Issue is Rs 461.26 per equity share,” the company said in a stock exchange filing.
“Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and the approval of the shareholders, accorded through a special resolution on June 21, 2024, by way of postal ballot, the company may offer a discount of not more than 5% on the floor price so calculated for the issue,” it said.
The issue price will be determined by the company in consultation with the book running lead manager appointed for the issue. Please note that the trading window shall remain closed for the purpose of the issue, the disclosure said.
In May, the company announced plans to raise up to Rs 8,500 crore to reduce the debt. Company shareholders had approved the same last month.
The Anil Agrawal-led Vedanta reported a 27.21 percent year-on-year (YoY) drop in consolidated net profit (attributable to owners of Vedanta) at Rs 1,369 crore for the March quarter compared with Rs 1,881 crore in the same quarter last year.
The consolidated revenue from operations fell 6.14 percent YoY to Rs 34,937 crore from Rs 37,225 crore in the corresponding quarter last year. Vedanta said sales were flattish despite lower LME and exchange rate fluctuations.
Ebitda for the quarter fell 4 percent YoY to Rs 8,969 crore. Ebitda was up 3 percent sequentially, mainly driven by higher volume and structural cost saving initiatives across businesses partially offset by lower LME and exchange rate fluctuations. Vedanta said its net debt stood at Rs 56,338 crore, down 10 percent QoQ. For the March quarter, Vedanta said it generated robust free cash flow (pre capex) of Rs 9,948 crore, up 131 percent QoQ.
Vedanta Ltd, which is in the middle of a planned demerger, aims to operationalise coal blocks and expand capacities for its steel and aluminium business and has proposed to set aside $1.90 billion as capital expenditure for fiscal 2025.
This fiscal so far, the Vedanta Group, which includes Vedanta Ltd and Hindustan Zinc Ltd, has produced most wealth for its stock market investors, with combined market valuation growing by Rs 2.2 lakh crore. The Vedanta Group's market value increased by more over Rs 2.2 lakh crore between March 28 and June 20, 2024, according to stock exchange statistics.
Mining giant Vedanta on July 15 said the committee of directors of the company has approved the launch of a qualified institutional placement (QIP), setting the floor price at Rs 461.26 per equity share.
“We further wish to inform you that the ‘relevant date’ for the purpose of the issue is July 15, 2024, and accordingly, the floor price in respect of the aforesaid Issue is Rs 461.26 per equity share,” the company said in a stock exchange filing.
“Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and the approval of the shareholders, accorded through a special resolution on June 21, 2024, by way of postal ballot, the company may offer a discount of not more than 5% on the floor price so calculated for the issue,” it said.
The issue price will be determined by the company in consultation with the book running lead manager appointed for the issue. Please note that the trading window shall remain closed for the purpose of the issue, the disclosure said.
In May, the company announced plans to raise up to Rs 8,500 crore to reduce the debt. Company shareholders had approved the same last month.
The Anil Agrawal-led Vedanta reported a 27.21 percent year-on-year (YoY) drop in consolidated net profit (attributable to owners of Vedanta) at Rs 1,369 crore for the March quarter compared with Rs 1,881 crore in the same quarter last year.
The consolidated revenue from operations fell 6.14 percent YoY to Rs 34,937 crore from Rs 37,225 crore in the corresponding quarter last year. Vedanta said sales were flattish despite lower LME and exchange rate fluctuations.
Ebitda for the quarter fell 4 percent YoY to Rs 8,969 crore. Ebitda was up 3 percent sequentially, mainly driven by higher volume and structural cost saving initiatives across businesses partially offset by lower LME and exchange rate fluctuations. Vedanta said its net debt stood at Rs 56,338 crore, down 10 percent QoQ. For the March quarter, Vedanta said it generated robust free cash flow (pre capex) of Rs 9,948 crore, up 131 percent QoQ.
Vedanta Ltd, which is in the middle of a planned demerger, aims to operationalise coal blocks and expand capacities for its steel and aluminium business and has proposed to set aside $1.90 billion as capital expenditure for fiscal 2025.
This fiscal so far, the Vedanta Group, which includes Vedanta Ltd and Hindustan Zinc Ltd, has produced most wealth for its stock market investors, with combined market valuation growing by Rs 2.2 lakh crore. The Vedanta Group's market value increased by more over Rs 2.2 lakh crore between March 28 and June 20, 2024, according to stock exchange statistics.