Vedanta Ltd to raise up to Rs 3,400 crore via non-convertible debentures

Anil Agarwal-led Vedanta Ltd on Tuesday said that its board has approved a plan to raise up to Rs 3,400 crore via non-convertible debentures (NCDs) on a private placement basis. The funds will be raised in one or more tranches.

In a regulatory filing, the company said, "We hereby inform that the duly authorised Committee of Directors at its meeting held today i.e, Tuesday, December 19, 2023, considered and approved for raising, on a private placement basis, up to 340,000 nos. Secured, Unrated, Unlisted, Redeemable, Non-Convertible Debentures of face value Rs 100,000 each aggregating up to Rs 3,400 crore in one or more tranche(s)."

On Monday, the company announced its second interim dividend of Rs 11 per share for 2023-24. It is expected to cost the company Rs 4,089 crore. Earlier in May, the company had announced an interim dividend of Rs 18.5 per share.

The record date for payment of the second interim dividend has been fixed at December 27, 2023.

Last week, Vedanta Resources, the parent company of the Vedanta Group, announced the securing of a loan of $1.25 billion from private credit lenders. The money was raised to refinance part of its $3.2 billion debt, which will mature in 2024 and 2025.

The company had said the fundraising would help "create a long-term sustainable capital structure" and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business.

However, global rating agency S&P downgraded the company's ratings to "CC" from "CCC".

On Tuesday, 12 pm, Vedanta Ltd's shares were trading 0.69 per cent in the green at Rs 262.4 apiece on BSE.