Vedanta to raise ₹2,500 cr via debt securities; stock hits 52-week high

Anil Agarwal-led Vedanta group has said it'll raise up to ₹2,500 crore or $299.6 million via debt securities. Amid the development, Vedanta shares closed 4.27% up and hit a one-year high on the BSE today.

"The duly authorised committee of directors approved for raising, on a private placement basis, up to 2,50,000 nos. senior, secured, rated, listed, redeemable, non-convertible debentures (“NCDs”) of face value ₹1,00,000/- each aggregating up to ₹2,500 crores in one or more tranche(s)," Vedanta says via an exchange filing.

The company did not mention where the funds would be used. The Anil Agarwal-led company had raised funds via non-convertible debentures worth ₹3,400 crore in December 2023, too, taking the company's total debt up to ₹62,493 crore as of December 31, 2023.

Amid the development, the Vedanta stock opened a gap up at ₹305.25 and hit intra-day and a 52-week high of ₹312.50 compared to the previous session close of ₹298.55 on the BSE. At this price, the m-cap of Vedanta Ltd surged to ₹1,15,753.50 crore.

In its production release for the fourth quarter ending March 31, 2024, Vedanta says alumina production at Lanjigarh refinery was recorded at 484 kt, up 18% YoY and 3% QoQ, driven by better operational performance. The cast metal aluminium production at its smelters was at 598 kt, up 4% YoY.

The company’s mined metal production was recorded at 299 kt, up 11% QoQ, driven by a mix of improved mined metal grades and higher ore production across mines. Vedanta says it recorded the "highest-ever quarterly refined metal production" at 273 kt, up 6% QoQ on account of better plant availability and up 1% YoY.

In Zinc, the company's total production was recorded at 33 kt, lower 20% QoQ and 47% YoY. The BMM production was recorded at 12 kt, lower 4% QoQ and 18% YoY due to lower throughput and grades, partly offset by higher recoveries. In oil and gas, the company says its Rajasthan block’s average gross production was lower by 6% QoQ and by 13% YoY at 97.8 kboepd.

In iron ore, saleable ore production was recorded at 1.7 million tonnes, up 13% YoY and 23% QoQ due to improved operational efficiency and process improvement. The pig iron production at 198 kt, up 6% YoY, was driven by improved process efficiency resulting in increased production, partially offset by the shutdown of small furnaces. The company's overall power sales were recorded lower 1% YoY and 2% QoQ to 3,981 million units.

Anil Agarwal-led mining giant's profit for the October-December quarter had dropped 42.2% to ₹3,092 crore as compared to ₹5,354 crore in the same quarter last year. Vedanta's revenue came in at ₹33,691 crore, down 0.01% from ₹33,697 crore in the year-ago period.