Vedanta to raise Rs 2,500 crore via debentures, stock trading higher

Metals-to-oil conglomerate Vedanta will raise up to Rs 2,500 crore ($299.6 million) through debt securities, the company said on Thursday. The funds will be raised through the issue of non-convertible debentures on a private placement basis. The Anil Agarwal-led company did not mention the purpose for which funds would be utilized.

“We hereby inform that the duly authorized Committee of Directors at its meeting held today i.e., Thursday, April 04, 2024, considered and approved for raising, on a private placement basis, up to 2,50,000 nos. Senior, Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (“NCDs”) of face value Rs 1,00,000/- each aggregating up to Rs 2,500 crore in one or more tranche(s), said  Vedanta in a communication to bourses.

Vedanta shares were trading 3.38% higher at Rs 308.65 at 2:47 pm today. Earlier, the shares of Anil Agarwal-led firm climbed 4.67% to a 52-week high of Rs 312.50 on BSE. Market cap of the firm rose to Rs 1.15 lakh crore.

In terms of returns, the stock fell 26% in two years and rose 9.60% in a year. The stock hit 52 week high for the third straight session today. 

The stock hit a 52-week high of Rs 308 on April 3, 2024 and Rs 301.90 on April 2, 2024.

Earlier in the day, the firm said it delivered highest ever annual volume across key businesses.

Vedanta said alumina production at Lanjigarh Refinery rose 18% (yoy) to 484 kt in Q4 and 3% (qoq) driven by better operational performance. The cast metal aluminium production at the firm's smelters climbed 4% year-on-year to 598 kt.  In Zinc India business, mined metal production came at 299 kt in Q4, up 11% QoQ, driven by mix of improved mined metal grades and higher ore production across mines.