Mining major Vedanta (VEDL), a subsidiary of London-headquartered Vedanta Resources (VRL), on Thursday approved raising up to Rs 2,500 crore through issuance of non-convertible debentures.
The company will issue secured NCDs of face value Rs 100,000 each totalling `2,500 crore in one or more tranches, VEDL said in a regulatory update, but did not provide further details.
According to media reports, the company will use the fresh funding to meet the capex requirements and repay term loans. It has two separate term loans of Rs 300 crore and Rs 1,000 crore due on November 14 this year and March 31, 2024.
VEDL had raised a similar amount through NCDs earlier in January this year.
Earlier in June, VEDL committed to invest $1.7 billion as capex in FY24 to augment its assets and production as it was optimistic of an “exciting journey” ahead, an increase from $1.2 billion in FY23. Vedanta was looking to expand its aluminium and zinc capacities, and its oil & gas operations.
Last month, chairman Anil Agarwal said the company is mulling listing some of its businesses to ensure better returns and dividends, as investors love pure-play firms. Stating this as a “vision”, Agarwal said the company will seek board approvals and take it forward at an “appropriate” time.
VRL would look at moving its Konkola Copper Mines (KCM) into VEDL at the “right valuation”, even as it embarks on a plan to integrate all its copper businesses.
Earlier this month, VRL, the parent company of Mumbai-listed VEDL, announced that the ownership and operational control of KCM was returned to the company by the Zambian government.
In 2019, KCM was placed under provisional liquidation by the former Zambian President Edgar Lungu’s administration, which accused VRL of dishonesty about expansion plans and tax payments. These had initiated a series of legal battles. According to media reports, current President Hakainde Hichilema ended a four-year legal battle over its ownership. VRL and Zambian government-owned ZCCM Investments have resolved their disputes with KCM.