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Vedanta launches bond issue for raising ₹4,100 crore

Mining conglomerate Vedanta Ltd is raising u20b94,100 crore through an unsecured non-convertible debentures to repay existing debt and meet capex needs, sources said.<br><br>The base issue of u20b94,100 crore along with a greenshoe option allows the company to raise up to a total of u20b95,000 crore, as per the placement memorandum.

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Vedanta launches bond issue for raising ₹4,100 crore

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  1. Vedanta launches bond issue for raising ₹4,100 crore

  2. Mining conglomerate Vedanta Ltd is raising ₹4,100 crore through an unsecured non-convertible debentures to repay existing debt and meet capex needs, sources said. Source URL- https://upstox.com/news/market-news/stocks/vedanta-launches-bond-issue-for-raising-4-100-crore/article-171542/

  3. The base issue of ₹4,100 crore along with a greenshoe option allows the company to raise up to a total of ₹5,000 crore, as per the placement memorandum. • The proceeds would be used for general corporate purposes, repayment / prepayment of the existing debt and for capital expenditure requirements. • Vedanta is touting its strong cash flows and ongoing growth projects and has already managed to get anchor investors, sources said.

  4. Anchor investors for the Series-1 debentures, which have a base issue size of ₹2,250 crore and a greenshoe option of ₹750 crore, include ICICI Prudential MF, Aditya Birla Sun Life MF, Kotak Mahindra MF, and Axis MF. • Reliance General Insurance Company and two other financial institutions are the anchor investors for the Series -2 which has a base issue size of ₹1,000 crore and a greenshoe option of ₹750 crore.

  5. "The companyhas strong asset basealong with prudentcapital allocation, and is undertakinggrowth and efficiency improvementcapex in multiple segments, especially in aluminium andzinc.This will further support marginprofile and EBITDA levels overthe medium term. The expected increaseinannual EBITDA will support increasedcashaccrual necessaryto support ongoing capex and debt reduction. Given the volatile nature of commodity prices, sustenanceof continued rampup in EBITDA to expected annual levels will be a key ratingsensitivityfactor," CRISIL said.

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