Vedanta Rakes in ₹8,500 Crore with QIP: Sells 19 Crore Shares at ₹440 Each, 4.61% Discount on Floor Price

Vedanta has successfully raised ₹8,500 crore by selling 19.32 crore equity shares at ₹440 each through its Qualified Institutional Placement (QIP), which closed on Friday. This issue price was set at a discount of 4.61%, or ₹21.26 per share, compared to the floor price of ₹461.26.

The QIP was highly successful, attracting about three times the amount of subscription, with total bids around ₹23,000 crore, according to institutional brokers. The placement saw considerable interest from foreign institutional investors (FIIs), mutual funds, insurance companies, and other investors. Notable mutual funds such as Nippon, ICICI Prudential, SBI, Mirae, and White Oak were among those who participated in the offer.

In addition to mutual funds, the QIP attracted investments from foreign portfolio investors and ultra-high-net-worth individuals (UHNIs) from India. The funds raised through the QIP will be used by Vedanta to reduce its debt and finance its growth projects.

The Vedanta Committee of Directors authorised the QIP to open on July 15. The company had previously indicated in its May 15 stock exchange disclosure that the proceeds from the QIP might be used for repaying borrowings and funding new growth opportunities.

Vedanta has several growth projects underway, including an aluminium smelter and refinery, investments in new oil and gas blocks, and expansions in its steel and iron ore businesses. These projects are expected to drive the company’s near-term EBITDA target of USD 10 billion.