Vedanta’s QIP oversubscribed: Rs 8,000 crore offers receives Rs 23,000 crore in bids, FIIs & MFs show strong appetite
The QIP witnessed significant interest from Foreign Institutional Investors (FIIs), mutual funds, insurance companies and other investors. Apart from MFs, other investors include foreign portfolio investors and UHNIs from India.
- Jul 18, 2024,
- Updated Jul 18, 2024 4:50 PM IST
The qualified institutions placement (QIP) of Vedanta Ltd amounting to Rs 8,000 crore received around three times subscription around Rs 23,000 crore, institutional brokers said.
The QIP witnessed significant interest from Foreign Institutional Investors (FIIs), mutual funds, insurance companies and other investors. Prominent mutual funds like Nippon, ICICI Prudential, SBI, Mirae, and White Oak have put in bids in the offer. Apart from MFs, other investors include foreign portfolio investors and UHNIs from India.
The issue, which is likely to close on July 19, will enable the company to deleverage its balance sheet and fund growth projects.
The company’s committee of directors authorised the opening date of QIP on July 15 with a floor price of Rs 461.26 per share for this issue. Vedanta in a May 15 disclosure to the stock exchanges said the proceeds may be used for prepayment of the borrowings as well as funding growth opportunities.
The mining major has various projects under execution having high potential for increasing volume, business integration, and enhancing the range of value-added products across its businesses. These growth projects will be the key drivers to Vedanta's near-term EBITDA target of $10 billion.
The projects include an aluminium smelter and refinery, investment in new oil and gas blocks, and expansion of its steel and iron ore businesses.
Last fiscal, Vedanta delivered a strong financial performance and growth on multiple fronts, with many of its businesses -- aluminium, zinc, silver, steel, iron ore, and ferrochrome -- achieving their highest-ever annual production levels.
The company recorded its second-highest annual consolidated revenue of Rs 1,41,793 crore in FY24 and second-highest annual EBITDA of Rs 36,455 crore.
Vedanta announced a plan to demerge its business units into independent pure play companies in September 2023.
The demerger will help unlock value and attract large scale investment into the expansion and growth of its businesses. It will create independent companies housing the aluminium, oil & gas, power, steel and ferrous materials, and base metals businesses, while the existing zinc and new incubated businesses will remain under Vedanta Ltd.
Vedanta Chairman Anil Agarwal has recently said, “We are going ahead with the demerger of our businesses, which will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock massive value. Each demerged entity will chart their own course but will follow Vedanta’s core values, its enterprising spirit, and global leadership.”
The qualified institutions placement (QIP) of Vedanta Ltd amounting to Rs 8,000 crore received around three times subscription around Rs 23,000 crore, institutional brokers said.
The QIP witnessed significant interest from Foreign Institutional Investors (FIIs), mutual funds, insurance companies and other investors. Prominent mutual funds like Nippon, ICICI Prudential, SBI, Mirae, and White Oak have put in bids in the offer. Apart from MFs, other investors include foreign portfolio investors and UHNIs from India.
The issue, which is likely to close on July 19, will enable the company to deleverage its balance sheet and fund growth projects.
The company’s committee of directors authorised the opening date of QIP on July 15 with a floor price of Rs 461.26 per share for this issue. Vedanta in a May 15 disclosure to the stock exchanges said the proceeds may be used for prepayment of the borrowings as well as funding growth opportunities.
The mining major has various projects under execution having high potential for increasing volume, business integration, and enhancing the range of value-added products across its businesses. These growth projects will be the key drivers to Vedanta's near-term EBITDA target of $10 billion.
The projects include an aluminium smelter and refinery, investment in new oil and gas blocks, and expansion of its steel and iron ore businesses.
Last fiscal, Vedanta delivered a strong financial performance and growth on multiple fronts, with many of its businesses -- aluminium, zinc, silver, steel, iron ore, and ferrochrome -- achieving their highest-ever annual production levels.
The company recorded its second-highest annual consolidated revenue of Rs 1,41,793 crore in FY24 and second-highest annual EBITDA of Rs 36,455 crore.
Vedanta announced a plan to demerge its business units into independent pure play companies in September 2023.
The demerger will help unlock value and attract large scale investment into the expansion and growth of its businesses. It will create independent companies housing the aluminium, oil & gas, power, steel and ferrous materials, and base metals businesses, while the existing zinc and new incubated businesses will remain under Vedanta Ltd.
Vedanta Chairman Anil Agarwal has recently said, “We are going ahead with the demerger of our businesses, which will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock massive value. Each demerged entity will chart their own course but will follow Vedanta’s core values, its enterprising spirit, and global leadership.”