Vedanta may issue NCDs; parent could raise $1 billion via stake sale

Vedanta informed the stock exchanges in a communication on Monday that a committee of directors would meet on April 13 to consider the issuance of NCDs on a private placement basis

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3 min read Last Updated : Apr 11 2023 | 11:30 PM IST

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BSE-listed Vedanta Ltd is planning to issue bonds, while promoter Vedanta Resources Ltd (VRL), according to banking sources, might be looking to raise around $1 billion through a sale of up to 5 per cent stake.

Vedanta informed the stock exchanges in a communication on Monday that a committee of directors would meet on April 13 to consider the issuance of non-convertible debentures (NCDs) on a private placement basis. The company, which announced a record Rs 37,700-crore dividend for 2022-23, did not disclose the amount it hoped to raise by issuing NCDs.

VRL, which owns around 70 per cent in Vedanta, was looking at the option of selling up to five per cent and had initiated talks with institutional investors for this, said banking sources. Considering Vedanta’s market capitalisation of Rs 1.01 trillion as on Tuesday, a five per cent stake sale would help raise up to Rs 5,000 crore. The company has lost around 11.5 per cent of its value si