Vedanta Rs 8,500 Crore QIP: How the Company Plans to Reduce Its Debt in 2024
Vedanta Limited’s board has approved the third interim dividend for the financial year 2024-25, with a payout of Rs 20 per equity share amounting to Rs 7,821 crore. The record date for the dividend has been set as Tuesday, September 10, 2024, and the interim dividend will be paid within the stipulated timelines as prescribed under law.
Main Points
- 1 Vedanta Shares Likely to Gain on Dividend Announcement
- 2 Vedanta Resources in Talks to Raise $1 Billion Through Foreign Currency Bonds
- 3 Vedanta Completes Stake Sales and Debt Reduction Initiatives
- 4 Vedanta Remains a Key Player in the Mining and Metals Sector
- 5 Vedanta’s Upcoming Analyst and Investor Meet
Vedanta shares are expected to see a surge in trading on Monday, September 9, 2024, as the company’s board has announced the third interim dividend for the current fiscal year. Investors are advised to closely monitor the stock’s performance, as similar trends were observed in the past when Vedanta announced dividends.
Vedanta Resources in Talks to Raise $1 Billion Through Foreign Currency Bonds
Vedanta Resources PLC, the holding company of Vedanta Limited, has begun discussions with lenders to raise up to $1 billion through foreign currency bonds. The funds will be used to refinance up to $600 million of bonds maturing in 2026 and for equity infusion in some of the group’s existing and new businesses. The group’s improved liquidity position after recent stake sales is expected to facilitate the bond issuance.
Vedanta Completes Stake Sales and Debt Reduction Initiatives
In recent months, Vedanta Limited has undertaken several initiatives to reduce its debt burden. In July, the company raised Rs 8,500 crore through a qualified institutional placement (QIP), with plans to use Rs 6,375 crore to repay debt owed to Oaktree Capital, Deutsche Bank, and Union Bank of India. Additionally, a Vedanta group entity, Finsider International Company Limited, sold almost 98 million shares in June to raise Rs 4,184 crore for debt reduction. In August, Vedanta Limited also raised funds through the sale of Hindustan Zinc Limited shares worth around Rs 6,500 crore.
Vedanta Remains a Key Player in the Mining and Metals Sector
Vedanta Limited, a diversified natural resources company, operates in various sectors, including Aluminium, Copper, Iron Ore, Oil & Gas, Power, and more. The company’s key products and revenue segments include Aluminium, Copper Cathodes, Oils, Iron Ore, Pig Iron, and Others. As of March 31, 2024, Vedanta Limited had a market capitalization of Rs 179,623.68 Crore, making it a significant player in the mining and metals industry.
Vedanta’s Upcoming Analyst and Investor Meet
Vedanta Limited has announced an upcoming analyst and investor meet, providing an opportunity for stakeholders to engage with the company’s management and gain insights into its future plans and strategies. The meet is expected to be held in the coming weeks, and details will be shared in due course
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