Vedanta to Raise INR 8500 Crore Via QIP: Floor Price set at INR 461.26 According to a recent exchange filing, Vedanta, the mining company has announced a floor price for its Qualified Institutional Placement (QIP) issue.
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According to a recent exchange filing, Vedanta, the mining company has announced a floor price for its Qualified Institutional Placement (QIP) issue.
The QIP issue has been set at INR 421.26 per equity share after approval was obtained from the shareholders in June. The issue will look to raise funds to INR 8,500 Crore through the issuance of securities. The move is said to help Vedanta optimize its capital structure and enhance its shareholder value, as reported by Financial Express.
According to Vedanta, the company is focusing on several projects and anticipates long-term capital expenditure of nearly USD 8 Billion. For FY25, it is reported that the conglomerate has set a target of USD 1.9 Billion for capital expenditure, which is higher than the previous year's US$1.4 Billion expense.
The company has set a capital expenditure target of $1.9 Billion, up by more than a third from the previous year's $1.4 Billion expense. The fundraising is said to support ongoing capital expenditure, and also be utilized to lessen the high-cost debt incurred in the previous years.
According to FE, the company reported a consolidated net debt of INR 56,338 Crore as of March 2024. It was also recorded that Vedanta's net debt to operating profit ratio was 1:5, while gross debt stood at INR 71, 759 Crore with as much as 82 per cent of it being accounted for in INR and the rest in foreign currency.
Vedanta is also reported to hold a term debt of INR 69,062 Crore with a working capital loan of INR 1159 Crore and a short-term borrowing of INR 1538 Crore.
Vedanta shares have been delivering positive returns to its investors and over the last month, the company's stock has shown a positive 2.10 per cent return indicating short-term growth, reports FE. The performance has been marked to be impressive over the last six months with a high jump of 69.03 per cent.
The company operates across diverse sectors such as oil and gas, zinc-lead-silver, aluminum, iron ore, steel, copper, ferroalloys, power, nickel, and semiconductors. More recently, Vedanta also announced the acquisition of AvanStrate Inc., a Japanese manufacturer of high-quality glass substrates.
