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Business News/ Companies / News/  Vedanta stock up over 3% after board approves fundraising of 2,500 crore via debt securities
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Vedanta stock up over 3% after board approves fundraising of ₹2,500 crore via debt securities

Vedanta said that the fundraise will take place through the issue of non-convertible debentures on a private placement basis, said the board at its meeting held earlier today

A bird flies by the Vedanta office building in Mumbai. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS ENERGY) (vedanta)Premium
A bird flies by the Vedanta office building in Mumbai. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS ENERGY) (vedanta)

Shares of Vedanta Ltd were locked at over three per cent upper circuit to hit a fresh 52-week high mark of 312.50 on the BSE after the board approved that the company will raise nearly 2,500 crore through debt securities. The fundraise will take place through the issue of non-convertible debentures on a private placement basis, said the board at its meeting held earlier today. 

Earlier in the day, Vedanta also reported that higher aluminium and refined zinc production for the fourth quarter of FY24, while refined lead production declined. Vedanta Aluminum, a key aluminium manufacturer. announced the expansion of its alumina capacities after market hours on Wednesday. 

Also Read: Vedanta share price scales 52-week high: 3 key reasons leading to the gains for the stock

Vedanta Fundraising

The Anil Agarwal-led mining company highlighted that the meeting is part of its regular financing and refinancing carried out in the ordinary course of business. The miner raised funds via non-convertible debentures thrice in fiscal year 2024, the latest being in December last year for 3,400 crore.

Vedanta also said that the aforementioned announcement is in accordance with the resolution adopted by the Board of Directors during its meeting on March 21, 2024. Vedanta's net debt increased to 62,493 crore as on December 31, 2023 from 57,771 crore, it said in its third-quarter results of FY24. 

The company's cash and cash equivalents fell to 12,734 crore at the end of December from 167.02 crore. Last year, Vedanta also announced that it planned to restructure by splitting into six separate units, which analysts said would unlikely alleviate the cash-strapped group's debt concerns.

Vedanta Share Price Today

Shares of the metals-to-mining conglomerate opened at 305.25 on the BSE and gained 2.37 per cent to hit its 52-week high mark of 312.50 apiece against a previous close of 305.25 apiece on the BSE. Vedanta shares were last trading 3.37 per cent higher at 308.60 apiece on the BSE. The stock has gained more than 10 per cent in the last five trading sessions.

Also Read: Vedanta’s wriggle room narrows as creditors fret over demerger

Other Announcements

Vedanta announced the commissioning of a new 1.5 MTPA expansion at its top-notch alumina refinery in Lanjigarh, Odisha. This expansion, part of its new three MTPA facility, will help increase the Lanjigarh refinery's total nameplate capacity from the current two MTPA to five MTPA.

The expansion of alumina capacity will help the company to achieve complete vertical integration and improved profitability. In FY24, Vedanta produced 2.37 million tonnes of aluminium, which it highlighted was more than half of India’s aluminium.

John Slaven, CEO of Vedanta Aluminium, in a statement, said, “We are delighted to commission the expanded capacity, which strengthens our raw material security and reduces costs for our Jharsuguda and BALCO aluminium smelters.''

Vedanta also recorded the best-ever mined metal production in FY24, driven by improved mined metal grades. Refined metal also achieved its highest annual production. The highest ever annual production of pig iron recorded in FY24, up 19 per cent year-on-year (YoY). In steel, the highest-ever annual production was registered in FY24, up eight per cent YoY on account of debottlenecking and operational efficiency.

 

 

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 04 Apr 2024, 02:28 PM IST
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