Vedanta's Strategic Rs 3,000 Crore Debenture Drive

Vedanta Ltd's board of directors has sanctioned a fundraising of up to Rs 3,000 crore via debentures through private placement to enhance the company's capital framework and trim borrowing costs. The financial move involves issuing up to three lakh unsecured, rated, listed, and redeemable non-convertible debentures, each with a face value of Rs 1,00,000, amounting to the Rs 3,000 crore target.

The new debentures will find their listing on the BSE, marking another chapter in Vedanta's storied history of successful debt instrument issuances. Last October, a USD 500 million bond sale was oversubscribed threefold, and a similar issuance in June exceeded expectations with a 60% oversubscription rate. The company remains active in both domestic and international debt markets.

This latest capital-raising initiative coincides with Vedanta's ongoing efforts to whittle down its debt obligations and refine refinancing strategies to lower overall borrowing costs, reinforcing its financial health and investor appeal.