Vedanta Ltd on Thursday said its board approved a fundraise of up to Rs 8,500 crore. The Anil Agarwal-led company said that its committee of directors will decide on the fundraise structure, where the proposal includes the issue of equities and other financial instruments.
The metals-to-oil conglomerate also declared its first interim dividend of Rs 11 per equity share for financial year 2024-25 (FY25), amounting to Rs 4,089 crore. "The record date for the purpose of payment of dividend shall be Saturday, May 25, 2024, and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law," Vedanta stated.
This is the second time that the company is raising funds in the current fiscal year. Last month, it said it would raise up to Rs 2,500 crore through debt securities.
Vedanta is under the process of splitting into six different units.
As of March 31, 2024, the company's net debt rose about 25 per cent from a year ago to Rs 56,338 crore. Its full-year cash and cash equivalents fell to Rs 2,812 crore from Rs 6,926 crore a year earlier.
The announcements were made post-market hours today. Vedanta shares slipped 0.96 per cent to settle at Rs 433.20.
Nuvama Institutional Equities said rising commodity prices improve cash flows and open up the potential of rise in valuation multiple. It suggested that the company's debt overhang should subside significantly. Vedanta's debt likely peaked out in FY24, it added.
Antique Stock Broking has increased its price target on Vedanta to Rs 411 from Rs 318, with an implied FY26 EV/Ebitda multiple of 4.2 times, in line with global peers.