Vedanta's share price surges 4% after raising Rs 2,500 cr via NCDs

Shares of Vedanta 3.6 per cent at Rs 458.75 on the BSE in Friday’s intraday deals. The stock is trading near its 52-week high of Rs 506 per share reached on May 22, 2024. The company had hit a 52-week low of Rsd 207.85 on September 28, 2023. 

The recent stock price surge, however, came after the company on Thursday raised Rs 2,500 crore through issuing non-convertible debentures with a face value Rs 1,00,000 each, the company said in an exhnage filing. 

On Wednesday, Vedanta Resources sold a stake in its India-listed subsidiary, Vedanta, aiming to raise up to Rs 6,000 crore. Finsider International Co., another subsidiary of Vedanta Resources, agreed with one of its banks to divest 2.6 per cent of its shares in Vedanta to a group of institutional investors.

As of March 31, Vedanta Resources had a debt of $6 billion. The company has faced multiple rating downgrades since last year due to concerns raised by analysts regarding liquidity challenges and a heightened risk of default.

Upon completing the stake sale, the company stated that it would have reduced its debt by $650 million in fiscal year 2025.

Vedanta reported a 27.21 per cent year-on-year decline in consolidated net profit to Rs 1,369 crore for the March quarter in fiscal year 2023-24, down from Rs 1,881 crore in the previous year's corresponding quarter. 

Consolidated revenue from operations also decreased by 6.14 per cent year-on-year to Rs 34,937 crore, compared to Rs 37,225 crore in the same quarter last year.

At 11:52 AM; the stock of the company pared some of its gains and was trading 2.39 per cent higher at Rs 453.35 per share on the BSE. In comparison, the BSE Sensex was trading 0.31 per cent at 79,491 levels. 

Vedanta Limited, headquartered in Mumbai, is an Indian multinational mining company primarily engaged in operations across iron ore, gold, and aluminium mines. Its key mining activities are located in Goa, Karnataka, Rajasthan, and Odisha.