Vedanta shares rise 2% in trade after inking $600 mn facility agreement

Vedanta share price was up over 2 per cent after the company inked facility agreement with Twin Star Holdings and Welter Trading

Vedanta shares climbed 2.3 per cent in trade on Friday, logging an intraday high at ₹466.4 per share on BSE. At 9:29 AM, Vedanta share price was trading 2.38 per cent higher at ₹466.4 per share on the BSE. In comparison, the BSE Sensex was up 0.08 per cent at 83,826.51. 

 

The company's market capitalisation stood at ₹1,82,380.5 crore. Its 52-week high was at ₹527 per share and 52-week low was at ₹362.2 per share.

 

In one year, Vedanta shares have risen marginally by 0.3 per cent as compared to Sensex's rise of 6 per cent.  READ STOCK MARKET UPDATES TODAY LIVE

 

Why are Vedanta shares in demand? 

On Thursday, after market hours, the diversified metal company along with Twin Star Holdings and Welter Trading inked a $600 million facility agreement. 

 

A facility agreement is a formal contract between a borrower and a lender or group of lenders, outlining the terms and conditions under which a loan or credit facility is provided. It specifies the amount of the loan, the repayment schedule, interest rates, covenants, and other critical terms related to the borrowing arrangement. These agreements are commonly used in corporate financing, project finance, and other forms of structured lending.

 

"The Facility Agreement has been entered into for an amount of upto $600 million, of which $380 million is committed amount which may further be increased by an amount of up to $220 million," the company's filing read. 

 

The purpose of the agreement is to repay financial debt and associated interest payments, particularly for the VRL Group (Vedanta Resources Limited). It will also cover transaction-related costs.

 

Vedanta Resources Limited (related to Vedanta Limited, part of the promoter group, no direct shareholding) is the borrower, Twin Star Holdings Limited which holds 40.02 per cent shares in Vedanta and Welter Trading which holds 0.98 per cent shares are the guarantors.   ALSO READ | Safe Enterprises shares list at 9% premium on NSE SME, beat IPO GMP outlook

About Vedanta

Vedanta Limited is a leading global natural resources company, with interests in metals, mining, oil, and gas. Headquartered in Mumbai, India, it is one of the largest and most diversified natural resource companies in India, with a strong presence across key markets worldwide. Vedanta’s operations span a range of industries including aluminium, copper, zinc, lead, silver, oil, and gas.