Vedanta establishes the floor price for a QIP at Rs 461.26 per share.

15/7/2024,

The company’s three-year goal to reduce its standalone debt by $3 billion includes this measure.
The mining behemoth Vedanta Ltd. announced on July 15th in an exchange filing that the formal floor price for its Qualified Institutional Placement (QIP) offering is Rs 461.26 per equity share.

On June 21, Vedanta’s shareholders gave their approval to fund up to Rs 8,500 crore by issuing securities. The business further stated that this calculated action is a part of Vedanta’s continuous efforts to improve shareholder value and optimise its capital structure, reaffirming the company’s dedication to steady and strong financial growth.

According to a July 11 CNBC-TV18 report, Citi, JM Financial, and Nuvama are the most likely bankers appointed for the QIP issue.

By issuing shares or convertible securities to a limited set of institutional investors, including mutual funds, venture capital funds, insurance companies, and foreign institutional investors, publicly traded companies in India can raise money fast under the QIP technique.

It is a substitute for more conventional methods of raising money, like follow-on public offerings (FPOs) and initial public offerings (IPOs).

With this action, Vedanta hopes to cut $3 billion off its standalone debt in the next three years. As of March 31, Vedanta’s net debt was Rs 56,338 crore, down Rs 6,155 crore from the previous three months.

Last month, the company’s Finsider International approved a proposal from one of Vedanta’s banks to sell 2.6 per cent of the mining conglomerate’s shares to a group of respectable institutional investors for Rs 4,379.7 crore.

After conferring with the project’s book-running lead manager, the business will determine the issue price.

It further stated, “Please take note that the trading window will remain closed for the duration of the issue.”

Vedanta reported a 27% decrease in net profit for the fourth quarter of the fiscal year 2023–24 due to a weak showing in the oil and gas sector and falling metal prices, including those of zinc, copper, and aluminium.

Vedanta Ltd.’s shares closed at ₹459.40 on the BSE, up ₹9.95, or 2.21%.

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