Vedanta informed the bourses that the company's board of directors had passed a resolution "approving the floor price for the issue, being Rs 461.26 per equity share, based on the pricing formula as prescribed under the SEBI ICDR Regulations."
According to a regulatory filing made late on Monday, July 15, Vedanta Ltd., a mining major, has initiated a qualified institutional placement (QIP) offer with a floor price of Rs 461.26 per share.
The exchange filing also stated, "The company may offer a discount of not more than 5 per cent on the floor price so calculated for the issue."
The floor price of the QIP is 0.3 per cent more than the closing price of Vedanta's last trade on July 15. The shares on the National Stock Exchange (NSE) ended trading at Rs 459.45 a share.
Vedanta mentioned that the book running lead manager appointed for the QIP will be consulted in determining the issue price.
Debt-Reducing Strategy
Reducing the company's net debt, which was Rs 56,338 crore as of March 31, 2024, is probably the goal of the QIP. The company, led by Anil Agarwal, announced its fourth quarter results and stated that during the January-March period, it had lowered its debt by Rs 6,155 crore.
Raising Rs 8,500 crore by issuing equity shares
The issue was released following the approval by Vedanta's shareholders on June 21 of the plan to raise Rs 8,500 crore by issuing equity shares. The plan had previously been approved by the company's board in May.
Finsider International Company, a Vedanta subsidiary, sold all 2.6 per cent of its ownership in the mining giant last month. To raise Rs 4,184 crore, the shares were sold to institutional investors at a price of Rs 427 each.
Big Dividends
Vedanta had declared a dividend of Rs 50 in the previous fiscal year of FY 2023–2024. In FY 2022-2023, Vedanta declared a whopping dividend of Rs 81 in fiscal year.
Vedanta Q4 results
Vedanta reported a net profit of Rs 1,369 crore for the fourth quarter of 2024, which is less than the Rs 1,881 crore reported for the same period last year.
At Rs 34,937 crore, net sales for the period decreased 6.1 per cent year over year (Y-o-Y).
As of March 2024, the company reported that its gross debt was Rs 71,759 crore, its net debt was Rs 56,338 crore, and its cash and cash equivalents were Rs 15,421 crore.
