Vedanta to Raise Rs 5,000 Cr via Bonds Ahead of Demerger

Mining conglomerate Vedanta on Friday announced plans to raise Rs 5,000 crore through the issuance of debentures. The move follows a key development in its demerger proposal, with the National Company Law Appellate Tribunal (NCLAT) staying an earlier order by the NCLT that had rejected the scheme.

According to a regulatory filing, Vedanta’s committee of directors approved the issuance of 5 lakh unsecured, rated, listed, redeemable non-convertible debentures (NCDs) with a face value of Rs 1 lakh each, on a private placement basis.

"The duly authorised committee of directors at its meeting held today... has considered and approved the issuance of unsecured, rated, listed, redeemable, non-convertible debentures (NCDs) on a private placement basis... aggregating up to Rs 5,000 crore," the filing stated.

The NCDs will be listed on the BSE.

Earlier, Vedanta Ltd reported a 154.4% surge in consolidated net profit to Rs 3,483 crore for the March quarter, driven by lower production costs and higher volumes. This compares with Rs 1,369 crore in the same quarter last year.

Revenue for the January–March period rose to Rs 41,216 crore from Rs 36,093 crore a year earlier. As of March 31, 2025, Vedanta’s gross debt stood at Rs 73,853 crore.

Vedanta, led by Anil Agarwal, aims to complete its business demerger by the end of September. “We are on track to finish [the demerger] by the second quarter end,” said CFO Ajay Goel in an interview with PTI.

A subsidiary of Vedanta Resources Ltd, Vedanta Ltd operates across India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, South Korea, Taiwan, and Japan, with significant presence in sectors such as oil and gas, zinc, lead, silver, copper, iron ore, and steel.

Demerger Proposal Update

The NCLAT has granted interim relief to Vedanta by staying an earlier order from the National Company Law Tribunal (NCLT) that rejected its demerger scheme. The appellate tribunal will hear the case in detail on August 4.

The NCLT had previously dismissed the scheme after SEPCO Electric Power Construction Corporation, a China-based creditor, raised objections, alleging that Vedanta had failed to disclose an outstanding Rs 1,251 crore debt.

Vedanta plans to split its business into five listed entities—Vedanta Aluminium, Vedanta Power, Vedanta Iron & Steel, Vedanta Oil & Gas, and Vedanta Ltd—to streamline operations and attract sector-specific investors.