The fundraising is aimed at reducing debt and meeting certain capital expenditure requirements. ET had previously reported that the QIP fundraising could reach Rs 6,000 crore.
Earlier in May, the company had announced plans to raise up to Rs 8,500 crore to reduce debt, which its shareholders had approved last month.
Vedanta is currently pursuing several growth projects and is considering long-term capital expenditures of approximately $8 billion.
The company’s capital expenditure target for the current fiscal year is expected to be $1.9 billion, up by more than a third from $1.4 billion last year. While some of the proceeds from the fundraising will be earmarked for ongoing capital expenditure, some may also be used to repay high-cost debt incurred by the company in the past few years, a move that could potentially boost earnings, a person familiar with the development said. Spanning India, South Africa, Namibia, Liberia, UAE, South Korea, Taiwan and Japan, Vedanta has large operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrates, with forays into semiconductors and display glass. Vedanta’s consolidated net debt was Rs 56,338 crore, with a net debt-to-operating profit ratio of 1.5 times as of March 2024. Total debt was Rs 71,759 crore, of which 82% was in Indian rupees and the rest in foreign currencies.
The company also has long-term debt of Rs 69,062 crore, working capital loans of Rs 1,159 crore and short-term borrowings of Rs 1,538 crore.
On Monday, Vedanta shares closed around 3 per cent higher at Rs 461.95 on the NSE.
