Vedanta Sets Rs 461.26 As Floor Price For QIP

Vedanta Ltd. opened its qualified institutional placement of equity shares on Monday at a floor price of Rs 461.26 apiece. The issue price will be determined in consultation with the book running lead manager appointed for the issue, according to an exchange filing. The company has not disclosed how much it hopes to raise from institutional investors.

In May, shareholders approved plans to raise up to Rs 8,500 crore through the issuance of securities as the mining giant looks to pare debt.

The Anil Agarwal-owned company garnered Rs 2,500 crore via non-convertible debentures last month. Parent entity Vedanta Resources Ltd. offloaded stake in Vedanta for Rs 6,000 crore in block deals to reduce debt.

Vedanta has over 50 projects under execution, with high potential for increasing volume, business integration, and enhancing the range of value-added products across businesses.

"Our investment in growth projects is substantial, amounting to approximately $8 billion. These include our aluminium smelter, our alumina refinery, a copper smelter in Saudi Arabia, investment in new oil and gas blocks, and expansion of our steel and iron ore businesses," Agarwal said at the company's 59th annual general meeting.

Shares of Vedanta closed 2.21% higher at Rs 459.4 apiece ahead of the announcement, as compared to a 0.18% advance in the benchmark BSE Sensex.