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Vedanta jumps 7% after board approves Rs 1,000-cr fund raise via NCDs

The rise in stock came after the board approved fundraising worth Rs 1,000 crore via non-convertible debentures (NCDs) on a private pavement basis

Vedanta Resources

Vedanta Resources

SI Reporter New Delhi

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Vedanta stock rises: Shares of mining giant Vedanta rose as much as 6.76 per cent to hit an intraday high of Rs 478.80 per share on June 20, 2024.

The rise in stock came after the board approved fundraising worth Rs 1,000 crore via non-convertible debentures (NCDs) on a private pavement basis.

Non-convertible debentures (NCDs) are financial instruments issued by companies to raise capital. These fixed-income securities have a predetermined maturity date and are typically listed on stock exchanges. 

In an exchange filing, Vedanta said, “We hereby inform that the duly authorised Committee of Directors at its meeting held today i.e., Thursday, June 20, 2024, has considered and approved raising of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs) on a private placement basis, (upto 1,00,000 nos. of face value Rs 1,00,000 each) aggregating upto Rs 1,000 crore.”

The NCDs will be listed on the Bombay Stock Exchange (BSE), Vedanta said.

Vedanta Limited is a mining company, with its main operations in iron ore, gold and aluminium mines in Goa, Karnataka, Rajasthan and Odisha. The company was founded in 1965 by Dwarka Prasad Agarwal, father of Anil Agarwal. The company is headquartered in Mumbai. 

Financial performance

Vedanta reported a 27.2 per cent fall in its net profit in Q4FY24 after revenues plunged. The company also stated that the proposed demerger of its businesses is on track for completion in the current calendar year.

Vedanta reported a net profit of Rs 1,369 crore in the March quarter of FY24, lower than the Rs 1,881 crore in the March quarter of FY23.

Net sales for the period dropped 6.1 per cent on a year-on-year (Y-o-Y) basis, to Rs 34,937 crore. The company mentioned that Q4FY24 revenue was sequentially flat despite lower London Metal Exchange and exchange rate fluctuations. Sequentially, the company’s net profit was down 32.1 per cent.

The company mentioned that the quarter also saw an exceptional loss of Rs 200 crore due to an impairment charge of Rs 994 crore mainly at Tuticorin, partially offset by capital creditors written back in the power sector of Rs 793 crore.

Its earnings before interest, tax, depreciation, and amortisation (Ebitda) was at Rs 8,969 crore, down 4 per cent on a Y-o-Y basis.

On May 16, the board of directors approved the first interim dividend of Rs 11 per share on face value of Rs 1 per equity share for the financial year 2024-25 (FY25). 

At 12:55 PM, shares of Vedanta were trading 5.89 per cent higher at Rs 474.85 per share. In comparison, BSE Sensex was trading 0.08 per cent higher at 77,397.31 levels.

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First Published: Jun 20 2024 | 1:02 PM IST

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