Vedanta launches QIP, floor price set at ₹461.26 per share

The company's board of directors passed a resolution "approving the floor price for the issue, being ₹461.26 per equity share, based on the pricing formula as prescribed under the SEBI ICDR Regulations", Vedanta informed the bourses.

"The company may offer a discount of not more than 5% on the floor price so calculated for the issue," the exchange filing added.

The floor price set for the QIP is 0.3% higher as compared to Vedanta's last trading price on July 15. The shares concluded trading at ₹459.45 apiece on the National Stock Exchange (NSE).

The issue price will be determined in consultation with the book running lead manager appointed for the QIP, Vedanta noted.

Move to cut debt

The QIP is likely aimed at reducing the company's net debt, which stood at ₹56,338 crore as of March 31, 2024. The Anil Agarwal-led company, while releasing the fourth quarter results, had pointed out that it had reduced its debt by ₹6,155 crore in the January-March period.

The launch of the issue comes after the shareholders of Vedanta, on June 21, gave nod to the proposal to raise ₹8,500 crore via the issuance of equity shares. Earlier, the company's board had cleared the proposal in May.

Last month, Vedanta subsidiary Finsider International Company sold its entire 2.6% stake in the mining major. The shares were offloaded to institutional investors at ₹427 apiece to raise ₹4,184 crore.