4 April 2024 – Vedanta, a prominent metals-to-oil conglomerate, has announced its intention to raise up to Rs 2,500 crore ($299.6 million) through debt securities. This move comes as part of the company’s ongoing financial strategy and efforts to bolster its capital base.
The fundraise will be facilitated through the issuance of non-convertible debentures on a private placement basis, as stated by the company. Although Vedanta has not specified the exact utilization of the proceeds, it marks another instance of the billionaire-led conglomerate tapping into the debt market to strengthen its financial position.
Vedanta has previously undertaken fundraising activities through non-convertible debentures multiple times during fiscal year 2024, with the most recent instance occurring in December, amounting to Rs 34 billion. The company’s third-quarter update revealed a rise in net debt to Rs 624.93 billion as of December 31, 2023, accompanied by a decline in cash and cash equivalents to Rs 127.34 billion.
Additionally, Vedanta reported mixed production results for the fourth quarter, with increases in aluminium and refined zinc production but a decrease in refined lead production. Despite these operational updates, Vedanta’s plans for restructuring into six separate units, announced last year, are viewed with skepticism by analysts regarding their efficacy in addressing the conglomerate’s debt concerns.
