Vedanta Gears Up for Growth with Rs 30,000 Crore War Chest

Anil Agarwal-led Vedanta Ltd has assembled a Rs 30,000 crore war chest from QIP, OFS, and dividends to accelerate deleveraging and strategic growth. The funds will assist in reducing debt, enhancing capital structure, and pursuing investment opportunities. The company's financial performance remains strong with significant profit growth and production achievements.

Vedanta Ltd, under the leadership of Anil Agarwal, has prepared a substantial war chest of Rs 30,000 crore, raised through a combination of qualified institutional placement (QIP), offer for sale (OFS), and dividends, according to sources.

The war chest comprises Rs 8,500 crore from Vedanta's QIP, Rs 3,200 crore from Hindustan Zinc Ltd's OFS, Rs 5,100 crore from the second interim dividend, and existing cash reserves amounting to Rs 13,000 crore. The funds will be deployed for deleveraging the balance sheet, improving capital structure, and pursuing transformational projects aligned with the company's near-term USD 10-billion EBITDA target, an analyst noted.

Vedanta has reported a strong financial performance with a 54% year-on-year increase in profit after tax and a significant reduction in production costs. The company is also advancing its demerger plans to enhance value creation and attract investments. Proceeds from these financial maneuvers will contribute to debt reduction and free cash flow generation, sources added.

(With inputs from agencies.)