Vedanta Ltd Launches QIP Issue to Reduce Debt and Fund Capital Expenditure

Vedanta Ltd has launched its qualified institutional placement (QIP) issue at a floor price of Rs 461.26 per share to reduce debt and meet capital expenditure obligations. The move follows approval to raise up to Rs 8,500 crore through securities issuance with a plan to deleverage USD 3 billion debt in the next three years.

Vedanta Ltd announced the launch of its qualified institutional placement (QIP) issue at Rs 461.26 per share, aiming to reduce debt and meet capital expenditure requirements.

A committee has approved the floor price, slightly higher than Monday's closing price of Rs 459.40 per share on the BSE. The board had earlier approved raising up to Rs 8,500 crore, later endorsed by shareholders.

Vedanta Resources plans to deleverage USD 3 billion debt within three years. The company's gross debt as of March 31, 2024, was Rs 71,759 crore. Vedanta's asset portfolio spans metals, minerals, oil, gas, and power, and it is venturing into semiconductor manufacturing.