Vedanta Ltd, the metals-to-oils conglomerate, launched its fundraising program on Monday. They started a qualified institutional placement (QIP) with a floor price of ₹461.26 per share.
Vedanta’s shares rose by 2.2%, closing at ₹459.40 on Monday.
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The company mentioned it might offer a discount of up to 5% on the floor price for the QIP, aiming to raise ₹6,000 crore with an option to increase to ₹8,000 crore if there’s strong demand.
Sources say the QIP has already seen high interest, with bids coming from HDFC Life, SBI Life, and WhiteOak. The funds will be used to reduce debt and cover some capital expenses.
Back in May, Vedanta’s board approved raising up to ₹8,500 crore, which shareholders approved in June.
Vedanta is currently investing in several growth projects and plans long-term capital spending of about $8 billion. For this fiscal year, it plans to spend $1.9 billion, up from $1.4 billion last year.
Citibank, JM Financial, and Nuvama are handling the deal.
A source said part of the funds will go towards ongoing capital expenses, and some will be used to pay off high-cost debt, which could boost profits.
As of March-end, Vedanta had a net debt of ₹56,338 crore and a net-debt to operating profit ratio of 1.5 times. Its total debt was ₹71,759 crore, with 82% in Indian rupees and the rest in foreign currency.
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