Vedanta shares gain over 2% after raising ₹8,500 crore via QIP; check key investors

In a stock exchange filing, on July 20, the mining major said that its board had approved the issue and allotment of nearly 19.32 crore equity shares to eligible, qualified institutional buyers at an issue price of ₹440 per equity share. The issue price included a premium of ₹439 per share.

The issue price also included a discount of ₹21.26 per share (4.61% of the floor price) against the floor price of ₹461.26 apiece, aggregating to ₹8,500 crore.

The company informed the bourses that the issue opened on July 15 and closed on July 19.

The company said that after the QIP the paid-up equity share capital of the company increased to ₹3,91,06,86,689 comprising over 391 crore equity shares of face value of ₹1 each.

According to the filing, the QIP had six major allottees, who were allotted more than 5% of the total issue size. These major allottees were Nippon Mutual Fund, Morgan Stanley, SBI Mutual Fund, Societe Generale ODI, Copthall Mauritius Investment Ltd—ODI Account, and ICICI Mutual Funds.

Nippon Mutual Fund emerged as the largest allottee in the QIP, with 1,76,13,639 shares, or 9.11% of the total issue size. Morgan Stanley was the second largest allottee in the QIP, with 16660908 shares, or 8.62% of the total issue size.

According to a report by Moneycontrol, the company intends to use the funds raised via the QIP to repay in part or full the debt it owes to Oaktree Capital, Deutsche Bank, and Union Bank of India. As of June 25, the company owed ₹17,470 crore to Oaktree, Deutsche Bank, and Union Bank of India.

Shares of Vedanta Ltd are trading at ₹448 apiece, up 2%, on the NSE at 3:00 pm.