Vedanta Launches Rs 8,500-cr QIP at Rs 461.26/share

New Delhi, July 15 (PTI) Mining conglomerate Vedanta Ltd on Monday announced the launch of its qualified institutional placement (QIP) issue at a floor price of Rs 461.26 apiece.

The move aims at reducing debt and fulfilling certain capital expenditure obligations.

"The committee of directors of the company has, at its meeting held today...inter alia, passed resolutions for ... authorising the opening of the issue today, i.e. July 15, 2024," Vedanta said in a filing to BSE.

The committee approved the floor price for the issue at Rs 461.26 per equity share, the filing said.

The floor price is marginally higher than Monday's closing price of Rs 459.40 per share on BSE.

The company's board in May given its go-ahead to raise up to Rs 8,500 crore through issuance of securities. This fundraise was later approved by the shareholders.

Vedanta Resources, the parent firm of Mumbai-based mining conglomerate Vedanta Ltd, does not foresee a rollover of its loans and plans to deleverage as much as USD 3 billion debt over the next three years, a senior official had earlier said at an analyst meeting.

Vedanta has a unique portfolio of assets among Indian and global companies with metals and minerals - zinc, silver, lead, aluminium, chromium, copper, nickel; oil and gas; a traditional ferrous vertical, including iron ore and steel; and power, including coal and renewable energy; and is now foraying into the manufacturing of semiconductors and display glass.

The company's gross debt stood at Rs 71,759 crore as of March 31, 2024.