Mining major Vedanta (VEDL), a subsidiary of London-headquartered Vedanta Resources (VRL), intends to raise funds through various modes, including public offerings and rights issues and others. The firm, helmed by industrialist Anil Agarwal, is also seeking board approval for the first interim dividend for FY25. The fundraising and dividend come at a time when Vedanta and parent VRL are looking at raising funds to trim debt.
The company has convened a board meeting on May 16 to seek approvals for the fundraising and the interim dividend, Vedanta said in a regulatory update. Following the announcements, Vedanta’s shares closed up 4.64% at Rs 433.15 on the BSE on Tuesday.
The fundraise modes may include issuances of shares or other securities convertible into equity, or via further public offer, rights issue, American Depository Receipts or Global Depository Receipts, among others. It would also explore the options of foreign currency convertible bonds, qualified institutional placement or preferential issues, it said.At its meeting on Thursday, the company’s board will also seek approvals for the interim dividend. The record date for the dividend, if declared, would be May 25, 2024.However, VEDL did not divulge the quantum of the funds it intends to raise, nor the financial details of the interim dividend.
Agarwal holds a 61.95% stake in VEDL through various entities, which was privatised decades ago, while the retail shareholding is at 11.58% and the remaining is held by institutional investors and others. VEDL had paid dividends worth Rs 37,573 crore in FY23. Earlier on May 7, Hindustan Zinc’s (HZL) board had declared an interim dividend of Rs 10 per share, or 500% for FY25, entailing a total outgo of Rs 4,225.32 crore.
The firm has fixed May 15 as the record date for the dividend. Prior to this in December, HZL, in which VEDL holds a majority 64.9% stake, declared an interim dividend of Rs 6 a share for FY24, amounting to a total outgo of Rs 2,535.19 crore.
Earlier in an analysts’ meeting, VRL officials said the company was looking to deleverage debt by $3 billion over three years, with plans to avoid rollover of loans. Vedanta Group had a debt of about $13 billion as of March-end.