Apt time for Vedanta to launch QIP, it will improve firm's balance sheet: Analyst

The company's gross debt stood at ₹71,759 crore as of March 31, 2024, as per a PTI report.

The company's board committee approved the floor price for the issue at ₹461.26 per equity share. The set floor price is marginally higher than Monday's settling price of ₹459.45 on the NSE.

Commenting on the company's QIP launch, Ambareesh Baliga, an independent market analyst, said, “It is an apt time for Vedanta to raise funds via QIP to repay the outstanding loans as the stock is close to an all time high; thus valuations from the promoter’s perspective couldn’t have been better.”

The market expert added the fundraise will improve the balance sheet of Vedanta and possibly take off the pressure on the group companies like Hindustan Zinc for higher dividend payouts.

Vedanta Q4 FY24 results

The Anil Agarwal-led company reported a 27.2% decline in consolidated net profit to ₹1,369 crore for the March quarter. The company had posted consolidated net profit of ₹1,881 crore in the year-ago period.

The consolidated income of the company in the January-March period dropped to ₹36,093 crore as against ₹38,635 crore in the year-ago period.

Vedanta share price performance

Shares of the company have given 62% return in the past 12 months and over 182% over the last five years. In comparison, the Nifty Metal index has jumped 51% during the one-year period and 255% in the last five years. The benchmark NIFTY50 has risen 116% in the last five years.

Investments in the securities market are subject to market risk. Read all the related documents carefully before investing. The stock discussed in this article is only for educational purposes and not a buy or sell recommendation. Investors are advised to conduct their own analysis and risk due diligence before trading and investing in the stock market.