Shares of Vedanta Ltd were locked at over three per cent upper circuit to hit a fresh 52-week high mark of ₹312.50 on the BSE after the board approved that the company will raise nearly ₹2,500 crore through debt securities. The fundraise will take place through the issue of non-convertible debentures on a private placement basis, said the board at its meeting held earlier today.
Earlier in the day, Vedanta also reported that higher aluminium and refined zinc production for the fourth quarter of FY24, while refined lead production declined. Vedanta Aluminum, a key aluminium manufacturer. announced the expansion of its alumina capacities after market hours on Wednesday.
Also Read: Vedanta share price scales 52-week high: 3 key reasons leading to the gains for the stock
Vedanta Fundraising
The Anil Agarwal-led mining company highlighted that the meeting is part of its regular financing and refinancing carried out in the ordinary course of business. The miner raised funds via non-convertible debentures thrice in fiscal year 2024, the latest being in December last year for ₹3,400 crore.
Vedanta also said that the aforementioned announcement is in accordance with the resolution adopted by the Board of Directors during its meeting on March 21, 2024. Vedanta’s net debt increased to ₹62,493 crore as on December 31, 2023 from ₹57,771 crore, it said in its third-quarter results of FY24.
The company’s cash and cash equivalents fell to ₹12,734 crore at the end of December from ₹167.02 crore. Last year, Vedanta also announced that it planned to restructure by splitting into six separate units, which analysts said would unlikely alleviate the cash-strapped group’s debt concerns.
Vedanta Share Price Today
Shares of the metals-to-mining conglomerate opened at ₹305.25 on the BSE and gained 2.37 per cent to hit its 52-week high mark of ₹312.50 apiece against a previous close of ₹305.25 apiece on the BSE. Vedanta shares were last trading 3.37 per cent higher at ₹308.60 apiece on the BSE. The stock has gained more than 10 per cent in the last five trading sessions.
Also Read: Vedanta’s wriggle room narrows as creditors fret over demerger
Other Announcements
Vedanta announced the commissioning of a new 1.5 MTPA expansion at its top-notch alumina refinery in Lanjigarh, Odisha. This expansion, part of its new three MTPA facility, will help increase the Lanjigarh refinery’s total nameplate capacity from the current two MTPA to five MTPA.
The expansion of alumina capacity will help the company to achieve complete vertical integration and improved profitability. In FY24, Vedanta produced 2.37 million tonnes of aluminium, which it highlighted was more than half of India’s aluminium.
John Slaven, CEO of Vedanta Aluminium, in a statement, said, “We are delighted to commission the expanded capacity, which strengthens our raw material security and reduces costs for our Jharsuguda and BALCO aluminium smelters.”
Vedanta also recorded the best-ever mined metal production in FY24, driven by improved mined metal grades. Refined metal also achieved its highest annual production. The highest ever annual production of pig iron recorded in FY24, up 19 per cent year-on-year (YoY). In steel, the highest-ever annual production was registered in FY24, up eight per cent YoY on account of debottlenecking and operational efficiency.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 04 Apr 2024, 02:28 PM IST