Mining giant Vedanta Limited successfully raised ₹8,500 crore (over USD 1 billion) through a Qualified Institutions Placement (QIP) of 19.31 crore equity shares at an issue price of ₹440 per share, as per a stock exchange filing by the company.
The offering, which concluded on July 19, represented a 4.61% discount to the floor price of ₹461.26 per equity share.
Vedanta indicated in its filing that it sold 19.31 crore shares to raise ₹8,500 crore.
Notable investors who participated in the QIP and were allocated equity shares include Abu Dhabi Investment Authority (ADIA), Goldman Sachs AMC, Nippon Mutual Fund, SBI Mutual Fund, UTI Mutual Fund, ICICI Mutual Fund, Aditya Birla Mutual Fund, and Mirae Mutual Fund.
Nippon Mutual Fund-managed funds accounted for 9.11% of the total issue size, while funds managed by Morgan Stanley and SBI Mutual Fund received 8.62% and 7.88% respectively.
Chairman Anil Agarwal expressed his satisfaction with the response to the QIP, highlighting the confidence that global investors have in Vedanta’s assets, operational efficiency, and future growth prospects.
Vedanta’s QIP attracted significant interest from foreign institutional investors (FIIs), mutual funds, insurance firms, and other investors. The company’s Committee of Directors initiated the QIP on July 15, 2024, with a floor price of ₹461.26 per share.
Proceeds from the QIP will be utilized to deleverage Vedanta Limited’s balance sheet and work towards achieving the company’s $10 billion EBITDA targets in the near term.
Vedanta has several growth projects in progress that have the potential to enhance volume, business integration, and the range of value-added products across its operations. These projects are expected to drive Vedanta towards its $10 billion EBITDA target.
These projects include an aluminium smelter and refinery, investments in new oil and gas blocks, and expansions in the steel and iron ore sectors.
Vedanta achieved robust financial performance across its businesses in the previous fiscal year, with record production levels in Aluminium, Zinc, Silver, Steel, Iron Ore, and Ferrochrome.
In FY24, the company posted its second-highest annual consolidated revenue of ₹1,41,793 crore and second-highest annual EBITDA of ₹36,455 crores.
The company announced plans to demerge its business units into independent pure-play companies in September last year. This move is expected to unlock value and attract further investment for expansion and growth.
