Shares of Vedanta Ltd are in focus on Thursday after the mining conglomerate received a long-term ratings upgrade from ICRA Rating. The fresh ratings come on the expectation of improvement in company's credit metrics, following the successful fund-raising worth $1 billion via a qualified institutional placement (QIP) in July 2024 and an additional $400 million generated from the offer for sale (OFS) of Hindustan Zinc Limited (HZL) in August 2024.
Vedanta shares ended 1.12% lower at Rs 459.25 in the previous session. Market cap of the firm slipped to Rs 1.79 lakh crore. Vedanta shares have a one-year beta of 1.2, indicating very high volatility during the period. Vedanta shares fell to a 52-week low of Rs 207.85 on September 28, 2023 and rose to a 52-week high of Rs 506.85 on May 22, 2024.
The rating for its 'Longterm/S term –Unallocated limits' instrument was upgraded to [ICRA]AA from [ICRA]AA-/[ICRA]A1+ rating watch with developing implications. The Longterm –Fund based –Term loan instrument was upgraded to [ICRA]AA from [ICRA]AA- and continues on rating watch with developing implications. As for Commercial Paper the rating was upgraded to ICRA]A1+ rating watch with developing implications.
Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.