· Company received final bids of more than Rs. 6500 crore, indicating 60% oversubscription on the base issue of ₹4100 crores.
Chandigarh: Mining Major Vedanta Ltd. plans to deploy funds from the ₹5000 croreraised through its unsecured non-convertible debenture (NCD) issue to pay-down a high-cost private credit facility of ₹3,400 crore, potentially reducing its annual interest burden by at least ₹350 crore, according to a person familiar with the matter. The remaining funds will likely be used for ongoing Capex requirements, general corporate purposes, and repayment or prepayment of existing debts, the person added.
The NCD offering, which closed on June 4, was oversubscribed with bids worth ₹6,555 crore, indicating a 60% oversubscription over its base issue size of ₹4100 crore. This prompted the company to exercise its greenshoe option of ₹900 crore, raising a total of ₹5000 crore.
The issuance attracted heavy demand from all categories of investors, including mutual funds, insurance companies, infrastructure finance companies, corporates, and NBFCs. Among the key investors who were ICICI Prudential MF, Aditya Birla Sun Life MF, Kotak Mahindra MF, HSBC MF, Axis MF, Star Health Insurance, Reliance Insurance, Aseem Infrastructure Finance, Alpha Alternatives and Larsen and Toubroamong others, said the person quoted above, adding that the unsecured NCDs have a coupon rate of 9.31% for the 2.5 years series, 9.45% for the 3 year series and 8.95% for the 2 year series.
Vedanta cited strong earnings, free cash flows and ongoing growth projects, coupled with a strong balance sheet to its potential investors.
This is the second unsecured NCD issuance by the company in 2025. In Feb 2025, the company raised Rs 2,600 crore via unsecured non-convertible debentures at a 9.40-9.50 per cent coupon rate, attracting institutional investors, including ICICI Prudential, Kotak, Nippon, Aditya Birla Sun Life, and Axis.
