Vedanta to raise upto ₹5,000 crore via unsecured bond issue for refinancing

Vedanta Ltd will issue bonds worth upto ₹5,000 crore to refinance existing debt and back capital expenditure as part of its restructuring and investment plans

Vedanta, the Indian mining and metals company owned by billionaire Anil Agarwal, plans to raise upto ₹5,000 crore ($585 million) through unsecured bonds to refinance existing debt and support capital expenditure. 

 

The proposed issuance offers investors three structures. The first tranche is ₹2,250 crore with a ₹750 crore greenshoe option, maturing in December 2027. A second option totals ₹1,000 crore with a ₹75 crore greenshoe and a three-year tenor, while the third comprises ₹850 crore, maturing in two years, a company spokesperson said.

 

The fundraising comes as Vedanta undergoes a major restructuring, spinning off its businesses into five independent, pure-play entities. The group has outlined a $4 billion investment plan over the next three years, with $1.5 billion already deployed in 2024–25 (FY25). 

 

 

The proceeds of the latest fundraise will help address near-term maturities and enhance financial flexibility. 

 

As of March 2025, Vedanta’s net debt stood at ₹53,251 crore, down over ₹3,000 crore from the previous year, driven by operational cash flows, a qualified institutional placement, and proceeds from a stake sale in its zinc unit. The company maintained an average debt maturity of over three years.

 

Vedanta’s London-based parent, Vedanta Resources, has reduced its debt to $5 billion in FY25 — the lowest in a decade — helped by strong dividend payouts from the Indian unit.

 

Shares of Vedanta closed flat at ₹434 in Mumbai on Tuesday, valuing the company at ₹1.69 trillion. Promoter group Vedanta Resources holds a 56.3 per cent stake.