Vedanta shares in focus on plan to raise funds, check details

Shares of Vedanta, the Indian mining and metals company owned by Anil Agarwal are in news today as the firm is set to raise up to ₹5,000 crore ($585 million) through unsecured bonds. The move aims to refinance existing debt and support capital expenditure. The bond issuance offers investors three structure options: a ₹2,250 crore tranche with a ₹750 crore greenshoe option maturing in December 2027, a ₹1,000 crore option with a ₹75 crore greenshoe and a three-year tenor, and an ₹850 crore tranche maturing in two years, a company spokesperson said. This fundraising initiative coincides with Vedanta's significant restructuring, wherein the company is spinning off its businesses into five independent entities.

As of March 2025, Vedanta's net debt decreased to ₹53,251 crore, marking a reduction of over ₹3,000 crore from the previous year. This was achieved through operational cash flows, a qualified institutional placement, and proceeds from selling a stake in its zinc unit. The company's debt profile now boasts an average maturity of over three years. Meanwhile, Vedanta's London-based parent company, Vedanta Resources, has reduced its debt to $5 billion in FY25 — the lowest in a decade — largely facilitated by robust dividend payouts from Vedanta's Indian operations.

Vedanta's share price remained stable, closing at ₹434 on the Bombay Stock Exchange, valuing the company at ₹1.69 trillion on Wednesday. The promoter group, Vedanta Resources, holds a 56.3% stake in the company. Looking ahead, Vedanta has earmarked a $4 billion investment plan over the next three years, with $1.5 billion already allocated in FY25. This strategic investment is expected to aid in the company's growth and development, aligning with its ongoing efforts to streamline operations and reduce debt burdens.

Vedanta reported a 118 per cent year-on-year (YoY) rise in net profit to Rs 4,961 crore for the March quarter, led by a 13.9 per cent YoY rise in sales to Rs 40,455 crore. The Anil Agarwal-led company's its EBITDA climbed 30.8 per cent to Rs 11,466 crore, with the Ebitda margin expanding 365 basis points to 28.34 per cent, beating analyst estimates.