Vedanta Raises Rs 8,500 Crore Via QIP

Vedanta Ltd. raised Rs 8,500 crore via a share sale to institutional investors. The company allotted 19.3 crore shares at Rs 440 apiece, which is at a discount of 4.61% to the floor price of Rs 461.26, according to an exchange filing on Friday. The company did not disclose the names of the institutional investors that acquired the shares.

The Anil Agarwal-owned company on Monday opened its qualified institutional placement of equity shares.

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.

Vedanta's net debt stood at Rs 56,338 crore as of March, while its net debt-to-Ebitda ratio was 1.5 times.

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

The Mumbai-based miner 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 the company closed 2.58% lower at Rs 439.8, compared with a 0.91% decline in the benchmark BSE Sensex.