Following the board's approval of the company's plan to borrow approximately ₹2,500 crore through debt instruments, shares of Vedanta Ltd. were locked at more than three percent of their upper circuit, reaching a new 52-week high of ₹312.50 on the BSE. The board stated at its meeting earlier today that the capital raise will be accomplished through the private placement issuance of non-convertible debentures.
Vedanta had earlier in the day revealed that, although refined lead output decreased, increased production of aluminum and refined zinc was recorded during the fourth quarter of FY24. Important aluminum producer Vedanta Aluminum said on Wednesday after market hours that it had increased its alumina capacity.
Fundraising for Vedanta
The mining firm managed by Anil Agarwal made it clear that the meeting is a part of its routine financing and refinancing that is done in the normal course of business. The miner raised ₹3,400 crore in December of last year, the most recent of three times in fiscal year 2024 through non-convertible debentures.
Vedanta said that the aforementioned declaration complies with the Board of Directors' resolution from its March 21, 2024, meeting. According to Vedanta's third-quarter FY24 statistics, the company's net debt climbed from ₹57,771 crore to ₹62,493 crore as of December 31, 2023.
By the end of December, the company's cash and cash equivalents had dropped from ₹167.02 crore to ₹12,734 crore. Analysts predicted that Vedanta's announcement last year about its intention to restructure—dividing into six distinct units—would not likely allay the cash-strapped company's financial worries.
Current Share Price of Vedanta
The metals-to-mining conglomerate's shares began at ₹305.25 on the BSE and increased by 2.37 percent to reach ₹312.50, their 52-week high, from a closing price of ₹305.25 on the BSE. As of right now, Vedanta shares were trading 3.37 percent higher on the BSE at ₹308.60 a share. Throughout the previous five trading sessions, the stock has increased by more than 10%.
