Signage for Vedanta Resources Ltd. is displayed at the company's office building in Mumbai, India, on Thursday, March 6, 2020. Photographer: Kanishka Sonthalia/Bloomberg
's board of directors on Thursday approved raising Rs 2,500 crore on a private placement basis, as non-convertible debentures (NCDs), the company informed the exchanges.
These would be raised in the form of secured, unrated, unlisted, redeemable NCDs in one or more tranches, the company said. In its earlier communication, the company stated that the fund-raising was part of its routine refinancing that is undertaken in the ordinary course of business.
As of June 2023, the company reported a consolidated debt of Rs 73,500 crore and a net debt of Rs 59,200 crore. The company has about Rs 11,000 crore coming up as long-term debt maturities in the current financial year, its latest analyst presentation shows.
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The company's refinancing plans are on expected lines, as earlier noted by rating agencies grading Vedanta's debt. In March, Crisil revised its outlook from stable to negative, "due to the possibility of higher-than-expected financial leverage and lower financial flexibility." Crisil also noted it expects Vedanta to look to refinance a significant portion of its principal debt obligation in FY23 and FY24, based on its strong banking relationship and refinancing track record.
In the same month, India Ratings revised its outlook on the company to negative, stating the revision reflects the elevated risk of refinancing at an increased cost of borrowing with scheduled material debt repayments at Vedanta and promoter company Vedanta Resources in FY24 and FY25.
While rating analysts agree the India-listed company has adequate liquidity, the same for the parent company is witnessing moderation.
First Published: Sep 21 2023 | 8:15 PM IST