Vedanta Ltd, a leading mining conglomerate, has announced plans to raise Rs 5,000 crore through debenture issuance on a private placement basis. This strategic move aims to support the company's future growth initiatives and optimize its financial structure.
Key Highlights of the Debenture Issuance
- Fundraising Amount: Rs 5,000 crore
- Listing: BSE
- Purpose: General corporate purposes, including debt repayment and financing new projects
Vedanta's Financial Performance
The company's strong financial performance in the March quarter has positioned it well for future growth. Key highlights include:
- Consolidated Net Profit: Rs 3,483 crore, up 154.4% YoY
- Revenue: Rs 41,216 crore, up from Rs 36,093 crore in the year-ago period
- Gross Debt: Rs 73,853 crore as of March 31, 2025
Demerger Proposal Update
Vedanta's demerger proposal has received a significant update, with the National Company Law Appellate Tribunal (NCLAT) granting interim relief by staying an earlier order from the National Company Law Tribunal (NCLT) that rejected the scheme. The company aims to complete the demerger by the end of September, which will involve splitting its business into five listed entities.
Benefits of the Debenture Issuance
The debenture issuance is expected to provide Vedanta with the necessary funds to:
- Optimize Capital Structure: Reduce reliance on expensive debt and improve financial flexibilitySupport
- Growth Initiatives: Pursue new opportunities, investments, and acquisitions
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