Vedanta mobilises ₹2,000 crore via private placement of debentures

Vedanta Ltd announced on Wednesday the allotment of 2,00,000 unsecured, redeemable, rated and listed non-convertible debentures (NCDs), each carrying a face value of ₹1 lakh, aggregating to ₹2,000 crore. The company's board committee has approved the issuance on a private placement basis, according to a regulatory filing.

The fundraise forms part of Vedanta's strategy to diversify its funding sources and refinance existing debt obligations. Non-convertible debentures are fixed-term, fixed-income corporate debt instruments that allow companies to raise capital without diluting equity or offering conversion options at maturity, making them an attractive financing tool for established corporations seeking to manage their liabilities.

As of June 30, Vedanta's net debt position stood at ₹8,299 crore. The latest capital raise is expected to provide the company with greater financial flexibility and improved debt metrics as it navigates its refinancing requirements. The debentures will be listed on recognized stock exchanges, offering liquidity to investors while providing Vedanta with structured long-term funding.

The issuance underscores Vedanta's focus on maintaining a balanced capital structure amid operational demands across its diversified portfolio spanning mining, metals, and energy sectors.