Vedanta Shares Rise 2% After Board Approves ₹3,500 Crore NCD Fundraise
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Vedanta shares rose around 2% after the board approved a ₹3,500 crore NCD issue through private placement. The fundraising will be carried out in one or more tranches, with the company planning to issue up to 3.5 lakh debentures.
Vedanta shares gained around 2% on Friday, September 18, after the company's board approved a proposal to raise up to ₹3,500 crore through the issue of non-convertible debentures (NCDs).
The fundraising will be carried out through private placement in one or more tranches, according to a filing with the stock exchanges. Vedanta plans to issue up to 3.5 lakh NCDs, each carrying a face value of ₹1 lakh.
The company said the securities will be unsecured, rated, listed, redeemable and non-convertible debentures.
Vedanta NCD Issue: What Did The Board Approve?
Vedanta's authorised Committee of Directors approved the NCD issue at its meeting on Friday. The company had earlier obtained board approval in May for raising funds through debt securities as part of its financing activities.
The latest issue will allow Vedanta to raise as much as ₹3,500 crore from investors, with the fundraising to be completed in one or more tranches.
NCDs are debt instruments through which companies borrow money from investors for a specified period and pay interest on the amount raised. Unlike convertible debentures, these securities cannot be converted into equity shares of the company.
The issue is therefore a debt-raising exercise and will not result in the issuance of new equity shares by Vedanta.
Vedanta Share Price Today
Vedanta shares rose during Friday's trading session as the company moved ahead with the fundraising plan.
The stock climbed as much as 1.7% to ₹261.90 on the NSE during the morning session. At around 2:16 pm, Vedanta shares were trading at ₹261.35, up 1.51% from the previous close of ₹257.45.
The stock's movement came as the company announced the board's approval of the NCD issue during market hours.
Vedanta Group Stocks Performance
Other listed companies in the Vedanta Group traded mixed on Friday as investors tracked movements across metals and commodity-linked stocks.
Vedanta Aluminium Metal shares were up around 2.4%, while Hindustan Zinc gained about 2.3% during afternoon trading.
Vedanta Iron & Steel, meanwhile, fell around 1.6%. Vedanta Power declined about 0.9%, while Vedanta Oil & Gas was down around 1.8%.
The moves came against a broader market backdrop in which the major indices were trading higher, while oil prices remained under pressure.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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