Vedanta launches QIP to raise up to ₹8,000 crore: All you need to know
Vedanta QIP: The metals-to-oils conglomerate may offer a discount of not more than 5% on the floor price for the issue.
Mining conglomerate Vedanta Ltd launched its qualified institutional placement (QIP), the company said in an exchange filing. Its fundraising committee approved the QIP's launch at a floor price of ₹461.26 per share and the metals-to-oils conglomerate may offer a discount of not more than 5% on the floor price for the issue. Through the QIP, the company aims to raise ₹6,000 crore with an option to raise an additional ₹2,000 crore in case of oversubscription.
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So far, HDFC Life, SBI Life and WhiteOak are among the institutions that are have put in bids, Economic Times reported citing people in the know. Proceeds from the QIP will be used by the company to reduce debt and fulfill capital expenditure obligations as well.
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This comes as the company's board had approved fund raising of up to ₹8,500 crore in May. This got shareholder approval in June this year.
Vedanta is currently involved in several growth projects and is looking at a long-term capital expenditure of around $8 billion. The capital expenditure target of the company for the current fiscal is likely at $1.9 billion. This is up by more than a third from the $1.4 billion it spent last year, Economic Times reported.
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As of March-end, Vedanta had a net debt of ₹56,338 crore at a consolidated level and its gross debt was ₹71,759 crore.
