Vedanta's NCD Success: Oversubscription Boosts Rs 2,575 Crore Fundraising

Vedanta Ltd is capitalizing on high institutional demand to raise Rs 2,575 crore through a non-convertible debenture issue. This move highlights the mining giant's efforts to diversify funding and strengthen its balance sheet, coinciding with an ongoing corporate demerger aimed at unlocking value and simplifying its structure.

Vedanta Ltd is experiencing a strong response from institutional investors, allowing the company to raise Rs 2,575 crore through a non-convertible debenture issue. Initially set at Rs 2,000 crore, investor enthusiasm prompted Vedanta to activate a greenshoe option for an additional Rs 575 crore, sources revealed.

The debentures, with a three-year maturity and an 8.95% coupon rate, have received an 'AA' rating from Icra Limited. The issuance end date is this week, with notable participating investors including ICICI Prudential Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund.

This strategic move aligns with Vedanta's broader financial objectives to diversify funding sources, reduce borrowing costs, and improve its debt profile. A corporate demerger is also underway to streamline operations and unlock shareholder value.