Vedanta raises ₹2,575 crore through NCDs to pay off debt
Vedanta just raised ₹2,575 crore by issuing non-convertible debentures (NCDs), basically a way for companies to borrow money directly from investors.
The original offer of ₹2,000 crore was so popular that Vedanta added another ₹575 crore through a greenshoe option.
Details of the issue
These are three-year NCDs with an 8.95% interest rate, lower than what Vedanta's paid recently.
They've got an "AA" stable safety rating from Icra Limited, which is pretty reassuring for investors.
Big mutual funds and pension funds like ICICI Prudential and Kotak jumped in on this one.
Funds will go toward paying old debt and new projects
Vedanta plans to use the funds to pay off old debt and invest in new projects, helping them save on borrowing costs.
This isn't their first rodeo: last year, their bond issue was oversubscribed three times.
Vedanta is slashing its debt big time
Vedanta Resources Ltd has been working hard to cut down its debt (from $8.9 billion in March 2022 to $4.8 billion by December 2025), which should give both investors and employees a bit more confidence about the company's future.