Vedanta board approves funds fundraise of ₹3,000 crore via NCDs; share jumps 5%

Vedanta share price jumped over 5% in intra-day deals on Wednesday, February 25 after its board approved fundraise of ₹3,000 crore via NCDs

Vedanta on Wednesday, February 25, 2026, said its board-constituted Committee of Directors has approved the issuance of unsecured, rated, listed and redeemable non-convertible debentures (NCDs) aggregating up to ₹3,000 crore through a private placement.

"..we hereby inform that the duly authorized Committee of Directors at its meeting held today i.e., Wednesday, February 25, 2026, has considered and approved the issuance of Unsecured, Rated, Listed, Redeemable, Non-Convertible Debentures (“NCDs”) on a private placement basis (upto 3,00,000 nos. of face value ₹ 1,00,000/- each) aggregating upto ₹ 3,000 Crores," it said in a regulatory filing.

In a regulatory filing to stock exchanges, the company said the approval was granted at the committee meeting held earlier in the day. The proposed issuance will comprise up to 3,00,000 NCDs, each with a face value of ₹1,00,000, taking the total issue size to ₹3,000 crore.

According to the disclosure, the bonds will be issued on a private placement basis.

Vedanta share performance

The stock rose 5.3% to its day's high of ₹732 on BSE. It is just 5% away from its 52-week high of ₹770, hit in January 2026. Meanwhile, it has rallied 102%, touched in April 2025.

The stock has delivered strong gains across timeframes, rising 77% over the past one year, 60% in the last six months, 43% over three months and nearly 6% in the past month. Over a five-year period, it has turned into a multibagger, rallying 247%.

BofA upgrades Vedanta

BofA Securities has upgraded the stock to a “Buy” from “Neutral” and raised its target price sharply to ₹840 from ₹480, implying an upside of about 75%.

The global brokerage pointed to a more favourable outlook for aluminium prices, continued support from silver prices and an attractive dividend yield estimated at over 6% for FY27. It also noted that meaningful deleveraging at the parent level lowers the risk of any hike in brand-fee rates or inter-corporate loans.

BofA has revised up its EBITDA estimates for Vedanta for FY26E–FY28E by 16–21%, factoring in higher aluminium price assumptions, a higher fair valuation for Hindustan Zinc, depreciation in the USD-INR exchange rate and a reduction in the holding-company discount to 5% from 15% earlier.

Vedanta Q3 Results

Vedanta posted a strong performance in the third quarter, reporting a 61% year-on-year increase in consolidated profit at ₹5,710 crore, while revenue rose 19% to ₹45,899 crore. EBITDA surged 34% year-on-year and 31% sequentially to a record ₹15,171 crore, with margins expanding to 41%, aided by higher metal prices, stronger premiums, better volumes and cost efficiencies.

The aluminium segment delivered a standout operational performance, with alumina production jumping 57% year-on-year to a record 794 kilo tonnes. Aluminium cost of production declined 11% year-on-year to $1,674 per tonne, supporting margin expansion. Zinc India and international zinc operations also reported robust growth, driven by favourable commodity prices and improved volumes.

Improved operating performance translated into stronger capital efficiency, with return on capital employed rising to 27%, nearly 300 basis points higher than a year earlier.

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