Mining conglomerate Vedanta Ltd is raising Rs 4,100 crore through an unsecured non-convertible debentures to repay existing debt and meet capex needs, sources said.
The base issue of Rs 4,100 crore along with a greenshoe option allows the company to raise up to a total of Rs 5,000 crore, as per the placement memorandum.
The proceeds would be used for general corporate purposes, repayment / prepayment of the existing debt and for capital expenditure requirements.
Vedanta is touting its strong cash flows and ongoing growth projects and has already managed to get anchor investors, sources said.
Anchor investors for the Series-1 debentures, which have a base issue size of Rs 2,250 crore and a greenshoe option of Rs 750 crore, include ICICI Prudential MF, Aditya Birla Sun Life MF, Kotak Mahindra MF, and Axis MF.
Mining conglomerate Vedanta Ltd is raising Rs 4,100 crore through an unsecured non-convertible debentures to repay existing debt and meet capex needs, sources said.
The base issue of Rs 4,100 crore along with a greenshoe option allows the company to raise up to a total of Rs 5,000 crore, as per the placement memorandum.
The proceeds would be used for general corporate purposes, repayment / prepayment of the existing debt and for capital expenditure requirements.
Vedanta is touting its strong cash flows and ongoing growth projects and has already managed to get anchor investors, sources said.
Anchor investors for the Series-1 debentures, which have a base issue size of Rs 2,250 crore and a greenshoe option of Rs 750 crore, include ICICI Prudential MF, Aditya Birla Sun Life MF, Kotak Mahindra MF, and Axis MF.
CRISIL has noted in its rationale that Vedanta's EBITDA is expected to improve further in fiscal 2026, despite moderation in prices by 5-10 per cent, with expected completion of ongoing capital expenditure (capex) for capacity increase and operating efficiency improvement, especially in the aluminium business.
"The expected increase in EBITDA will support the ongoing capex as well as scheduled debt repayment over the medium term," the rating agency said.
It expects Vedanta's strong asset base and multi-commodity presence to aid in growth.
"The company has strong asset base along with prudent capital allocation, and is undertaking growth and efficiency improvement capex in multiple segments, especially in aluminium and zinc. This will further support margin profile and EBITDA levels over the medium term. The expected increase in annual EBITDA will support increased cash accrual necessary to support ongoing capex and debt reduction. Given the volatile nature of commodity prices, sustenance of continued ramp up in EBITDA to expected annual levels will be a key rating sensitivity factor," CRISIL said.
In its Q4 earnings call, the company said it foresees a 20 per cent EBITDA growth with about 10 per cent growth in volumes and around 10 per cent from cost compressions and marketing premiums.
Vedanta's NCD issue closes on June 4.
