Vedanta shares in news today as board approves raising Rs 2,500 cr via NCDs

Shares of Vedanta Ltd are in news today after the board of the metals and mining firm cleared raising of Rs 2,500 crore through issue of non-convertible debentures on a private placement basis.

Vedanta stock ended 2.26% lower at Rs 226.55 on Thursday against the previous close of Rs 231.80 on BSE. The stock hit a 52-week low of Rs 224.70, sliding 3.06% during the session.

A total of 5.96 lakh shares of the firm changed hands amounting to a turnover of Rs 13.58 crore on BSE. Market cap of the Vedanta fell to Rs 84,213 crore. The stock has a one-year beta of 1.2, indicating high volatility during the period.

"The Committee of Directors on Thursday, considered and approved for raising, on a private placement basis, up to 2,50,000 secured, unrated, unlisted, redeemable, non-convertible debentures of face value Rs 1,00,000 each aggregating upto Rs 2,500 crore in one or more tranche(s)," the filing said.

In terms of technicals, the relative strength index (RSI) of Vedanta stands at 37.1, signaling the stock is trading neither in the oversold nor in the overbought territory. Vedanta shares stand lower than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Vedanta shares have lost 28.33% this year and fallen 18.28% in a year.

According to a report, Vedanta Resources is holding advanced talks with global private credit funds including Bain Capital, Davidson Kempner, Ares SSG Capital and Cerberus Capital, to syndicate a $1 billion short-term loan.

Parent Vedanta Resources’ high leverage and funding gap of $3 billion in FY2025 has made investors cautious. Kotak Institutional Equities in a recent noted said they are key areas of concern and overhang.

Vedanta reported a 40% fall in net profit to Rs 3308 crore in the first quarter. Revenue fell 13% to Rs 33,242 crore in Q1 from Rs 38,251 crore during Q1FY23. The company declared an interim dividend of Rs 18.5 per share.

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.

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