Vedanta board committee approves previously announced fundraising of ₹1,000 crore through NCDs

The company had first announced this fund raise on June 20, when it had said that the secured NCDs will be listed on BSE.

Vedanta shares are up 74% this year.

The stock has seen a strong rally in the past few months after Vedanta last year proposed a demerger to separate its existing six core businesses into six independent pure-play companies.

Under the proposed plan, while Vedanta will house the existing zinc business along with the new incubated businesses, the other newly created companies will cater to the aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses.

The demerger plan proposes Vedanta shareholders getting one share of each of the five newly listed companies for every single share they hold in the company.

As per experts, the demerger is expected to unlock value for minority shareholders besides improving operational efficiency of the company. Notably, the demerger plan is expected to be executed by the end of the current fiscal year.

Over the past five years, Vedanta revenue has risen from ₹84,447 crore in fiscal year 2020 to ₹143,727 crore in FY24. It also swung from a loss of ₹4,743 crore in FY20 to a profit of ₹7,537 crore.

However, the company’s profits have fallen from a high of ₹23,709 crore in FY22.

Vedanta Ltd started as Sterlite Industries in the 1980s even as its corporate group began to grow and came to be headquartered in London underneath the parent company Vedanta Resources Plc. The Vedanta Group acquired Sesa Goa in 2007 and later merged the companies to form Sesa Sterlite, which became Vedanta Ltd.