Vedanta announces launch of QIP, sets floor price at Rs 461.2 apiece

Earlier in May this year, the company announced plans to raise up to Rs 8,500 crore to reduce the debt. Company shareholders had approved the same last month.

Vedanta is currently in the midst of several growth projects and is looking at a long-term capital expenditure of around $8 billion.

Its capital expenditure target for the current fiscal is likely at $1.9 billion, up by over a third from the $1.4 billion it spent last year.

While some of the proceeds of the fundraising will be used to fund the ongoing capital expenditure, some of it may also be used to retire high-cost debt that the company has taken in the past couple of years — a move which could potentially boost profits, said a person familiar with the development.

Spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan, Vedanta has significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrate and foraying into semiconductors and display glass.

Vedanta had a net debt of Rs 56,338 crore at a consolidated level and a net-debt to operating profit ratio of 1.5 times as of March 2024. Its gross debt stood at Rs 71,759 crore, of which 82% is in Indian rupees, and the rest in foreign currency.

The company also has a term debt of Rs 69,062 crore, a working capital loan of Rs 1,159 crore and short-term borrowings of Rs 1,538 crore.

On Monday, Vedanta shares closed nearly 3% higher at Rs 461.95 on NSE.