With the recent capital infusion, Vedanta will be better positioned to meet its payment obligations and manage its debt effectively. Billionaire Anil Agarwal-controlled Vedanta Group has taken a fresh loan of about $850 million from JP Morgan and Oaktree in its latest fundraising efforts.
According to a Bloomberg report, the mining major has inked a five-year deal with JPMorgan Chase & Co. and Oaktree, which is expected to provide Vedanta with crucial financial cushion, which help it address its lingering debt obligations and will strengthen its financial position.
Of late, the company has been trying to raise funds to alleviate its debt burden and address its imminent debt repayment obligations. The exact terms and conditions of the loan agreement, including interest rates and repayment schedules, have not been disclosed, the report said.
The fundraising has come just ahead of $500 million junk-rated bonds issued by the Vedanta group, which are scheduled to mature by the end of this month.
With the recent capital infusion, Vedanta will be better positioned to meet its payment obligations and manage its debt effectively. The funds raised through the loan will provide significant relief in fulfilling the impending bond payments, people aware of the development said.
On Monday, the mining company, Vedanta Ltd, declared its first interim dividend for financial year (FY) 2023-24 worth Rs 18.5 per share. The record date has been set as May 30, 2023.
The payout by the mining major towards this will be Rs 6,877 crore, Vedanta said in a regulatory filing to the exchanges. "We wish to inform you that the board of directors of the company through a resolution passed by circulation on Monday, May 22, 2023 have approved a first interim dividend of Rs 18.50 per equity share i.e. 1850 percent on face value of Re 1 per share for the financial year 2023-24 amounting to Rs 6,877 crore," the company said.
"The record date for the purpose of payment of dividend is Tuesday, May 30, 2023. The interim dividend will be paid within stipulated timelines as prescribed under law," the statement read.
In the last six financial years, the total dividend payout to investors by Vedanta was Rs 217.65 per share.
In FY23, the mining giant gave dividends on five occasions. The total dividend paid was Rs 101.50.
On Wednesday, the stock was trading at Rs 289.65 against the previous close of Rs 288.40 on BSE. The market cap of the firm fell to Rs 1.06 lakh crore. Vedanta stock has fallen after three days of consecutive gain.
In a year, the stock is down 5.35 per cent and fallen 6.16 per cent this year. It hit a 52-week low of Rs 206.10 on July 1, 2022.