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Business News/ Companies / Vedanta looks to raise funds through issue of equity shares or FPO on May 16
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Vedanta looks to raise funds through issue of equity shares or FPO on May 16

The company is expected to finalize this decision during the upcoming board meeting scheduled for May 16.

Vedanta (REUTERS)Premium
Vedanta (REUTERS)

Mining conglomerate Vedanta Ltd is contemplating raising funds through the issuance of equity shares or by exploring other avenues such as a further public offer (FPO), rights issue, among others, the company said in an exchange filing. 

The company is expected to finalize this decision during the upcoming board meeting scheduled for May 16.

Vedanta mentioned that during the meeting that the company will also unveil any first interim dividend on equity shares for the fiscal year 2024-25, if applicable. 

Also read: INOX India Q4 results: Net profit jumps 44% YoY to 44 crore; revenue up 17%

Additionally, the company is exploring various avenues to raise funds, including American Depository Receipts (ADRs), Global Depository Receipts (GDRs), and Foreign Currency Convertible Bonds (FCCBs), among others.

In the previous month, the metals-to-oil conglomerate announced its intention to raise funds amounting to 2,500 crore ($299.6 million) through debt securities. This fundraising initiative will involve issuing non-convertible debentures on a private placement basis.

As per a report from Bloomberg, Vedanta Ltd. has enlisted the services of JPMorgan Chase & Co. to facilitate the raising of $300 million through rupee-denominated bonds.

This initiative is part of the company's strategy to diminish its standalone debt by $3 billion within the next three years. Vedanta disclosed a decrease in net debt to 56,338 crore as of March 31, marking a reduction of 6,155 crore from the preceding three months.

Also read: DLF Q4 results: Net profit rises 62% to 921 crore on strong housing sales, declares dividend of 5 per share

The company posted a 27 per cent decrease in net profit for the fourth quarter attributed to rising finance expenses and subdued prices of metals like zinc, copper, and aluminum.

The net profit declined to 1,369 crore for the quarter ending on March 31, down from 1,881 crore in the previous year. In the preceding December quarter, a profit of 2,013 crore was reported. Revenue from operations experienced a 6 percent decrease to 34,937 crore in the March quarter. However, sequentially, the revenue remained relatively stable.

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Published: 13 May 2024, 11:16 PM IST
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