Vedanta Limited, one of the prominent Indian metals-to-oil conglomerate, on Thursday, June 20, announced the approval of raising funds amounting to Ra 1,000 crore, the company announced through an exchange filing.
This will be done through the issuance of secured, rated, listed, and redeemable non-convertible debentures (NCDs) on a private placement basis.
Details of the Issuance
The company plans to issue Secured, Rated, Listed, Redeemable NCDs, each with a face value of Rs 1,00,000 and the NCDs will be issued through a private placement.
Vedanta will issue up to 1,00,000 NCDs, amounting to a total of Rs 1,000 crore.
Furthermore, these NCDs will be listed on BSE Limited.
Tenure and Coupon Rate
The specific details regarding the tenure, coupon rate, and schedule of payments will be outlined in the Disclosure Document, the company added in the regulatory filing.
Impact on Vedanta's Stock
Following the announcement, Vedanta's shares surged by nearly 7 per cent, reaching a high of Rs 477.90.
At 12:43 pm IST, the shares of the company were trading at Rs 475.95, up by 6.13 per cent.
Impact on Vedanta's Stock | Representative Image/Google
Recent Fundraising Approvals
In the past two months, Vedanta’s board has already approved raising up to USD 300 million through debentures and an additional USD 1 billion, though the structure and mode for the latter are still under consideration.
Financial Performance
As of March 31, the company’s net debt rose by 25 per cent to Rs 56,338 crore, while its cash and cash equivalents fell to Rs 2,812 crore from Rs 6,926 crore the previous year.
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