Vedanta’s shares saw an uptick on May 17, a day after the mining conglomerate’s board sanctioned a plan to raise up to Rs 8,500 crore. The specifics of the issuance are yet to be determined, as stated in a regulatory disclosure.
This marks the second fundraising initiative by the company in the current fiscal year. Last month, it announced its intention to raise up to Rs 2,500 crore through debt securities.
Additionally, Vedanta’s Board gave the green light for a dividend payment of Rs 11 per share for FY25, translating to a total payout of approximately Rs 4,089 crore. The record date for the dividend disbursement has been scheduled for May 25.
During the meeting held on May 16, the board also approved an investment in Vedanta Copper International (VCI) to establish a copper rod plant in Saudi Arabia. Following the investment, VCI is poised to become a direct wholly-owned subsidiary of the company, as outlined in the filing.
In 2023, the company’s subsidiary Malco Energy established a new unit in Saudi Arabia for its copper business, which was named ‘Vedanta Copper International VCI Company Limited’.
Meanwhile, Vedanta is exploring avenues to raise capital through the issuance of equity shares or through further public offerings, rights issues, or alternative means. This initiative aligns with the company’s objective to trim its standalone debt by $3 billion over the next three years.
As of March 31, 2024, the company’s net debt increased by approximately 25 percent compared to the previous year, amounting to Rs 56,338 crore. Meanwhile, its cash and cash equivalents for the full year declined to Rs 2,812 crore from Rs 6,926 crore in the previous fiscal year.
Vedanta reported a reduction in net debt to Rs 56,338 crore as of March 31, marking a decrease of Rs 6,155 crore from the preceding three months. The conglomerate, currently in the process of splitting into six different units, aims to alleviate its debt burden.
As of 11:14 am, Vedanta’s shares were trading 1.29 percent higher at Rs 438.65 on the National Stock Exchange (NSE). Year-to-date, the stock has rallied by 70 percent, outperforming the benchmark Nifty 50, which has risen approximately 2.8 percent during the same period.
