The significant mining company Vedanta (VEDL), a division of Vedanta Resources (VRL), with its headquarters in London, intends to raise Rs 8,500 crore through a variety of channels, such as rights issues in one or more tranches and public offers.
In a stock exchange report, Vedanta stated that the Anil Agarwal-led company has also recommended an interim dividend of Rs 11 per share for FY25, with a record date of May 25. This would require an outlay of Rs 4,089 crore. Following its meeting on Thursday, the board of Vedanta said that its committee of directors will determine the shape of the fundraiser. The plan calls for the issuance of stocks and other financial instruments.
Vedanta and its parent company VRL were attempting to obtain money to reduce debt at the time of the actions. VRL might pay off a portion of its debt with the dividend. VEDL distributed Rs 37,573 crore in dividends during FY23. The parent company has reduced its debt by $3.7 billion in the last two years and plans to reduce it by an additional $3 billion over the next three years.
Agarwal owns 61.95% of VEDL through several companies; institutional investors and other shareholders own the remaining 11.58% of the company. Funding for the establishment of a continuous cast copper rod factory in Saudi Arabia through Vedanta Copper International VCI Company was also approved by the company’s board on Thursday.
In order to pursue expansion potential in new geographic areas, the business is now building a copper rod manufacturing facility in Saudi Arabia with a targeted capacity of 125 kilo tonne per annum (KTPA).
Finsider International business, a Vedanta promoter group business, sold up to 65.52 million shares of the mining giant in several block trades earlier in February for a total estimated value of Rs 1,737.16 crore. The share price that was traded was Rs 265.14, which is 5% less than the closing price of Rs 279.20 on Wednesday. Vedanta’s shares ended the week at Rs 433.20, down 0.96% on the BSE.
