Vedanta's Bold Move: Raising Rs 5,000 Crore to Slash Debt and Fuel Growth
Vedanta Ltd plans to use Rs 5,000 crore raised through unsecured non-convertible debentures (NCD) to retire high-cost debt, saving an estimated Rs 350 crore in interest. The company also intends to fund growth capex with the proceeds. The NCD issue was oversubscribed, indicating strong investor interest.
- Country:
- India
Vedanta Ltd, a major player in the mining sector, is taking strategic steps to strengthen its financial position. The company recently raised Rs 5,000 crore through unsecured non-convertible debentures, aiming to address high-cost debt and fuel growth initiatives.
The funds will primarily target reducing a burdensome Rs 3,400 crore private credit facility, potentially lowering Vedanta's annual interest expenses by an impressive Rs 350 crore. Additionally, the proceeds will support ongoing capital expenditures and general corporate purposes.
The NCD issuance saw remarkable investor demand, surpassing the base issue size with a 60% oversubscription. Major stakeholders like ICICI Prudential MF and Reliance Insurance backed the offering, attracted by the attractive coupon rates spanning various series.
(With inputs from agencies.)
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