Vedanta's Strategic Financial Maneuver: Rs 4,100 Crore NCD Issuance Explained

Vedanta Ltd is raising Rs 4,100 crore through unsecured non-convertible debentures to repay debt and fund capex. The base issue with a greenshoe option could raise up to Rs 5,000 crore, already attracting anchor investors. CRISIL rates it 'AA' due to expected improved EBITDA and promoter's commitment.

Mining giant Vedanta Ltd is making a significant financial move by issuing Rs 4,100 crore through unsecured non-convertible debentures, intended to address debt obligations and support capital expenditure requirements.

The debenture issue, which includes a greenshoe option, could potentially raise up to Rs 5,000 crore. This financial strategy has already secured the interest of anchor investors, a testament to Vedanta's robust cash flows and their ongoing projects aimed at growth.

CRISIL's 'AA' rating of the NCD issuance reflects the expected improvement in Vedanta's EBITDA by fiscal 2026 and the company's presence across diverse commodity sectors. This move marks the second such issuance by Vedanta in 2025, demonstrating their strategic financial maneuvering amid variable commodity prices.

(With inputs from agencies.)