Vedanta Ltd has announced its fundraising plan of Rs 5,000 crore by issuing non-convertible debentures (NCDs). This decision is part of the company’s larger financial strategy to strengthen its position following a strong quarterly earnings report. The announcement was made through a regulatory filing and reported by PTI.
According to the filing, Vedanta’s committee of directors has approved the issue of 5 lakh unsecured, rated, listed, redeemable NCDs. Each debenture has a face value of Rs 1 lakh. These debentures will be offered through private placement and listed on the Bombay Stock Exchange (BSE). The move supports the company’s goal to manage capital effectively as it prepares for major changes.
Earnings See Strong Growth
The announcement follows a major rise in Vedanta’s earnings for the March quarter. The company reported a consolidated net profit of Rs 3,483 crore, showing a 154.4 percent jump from Rs 1,369 crore in the same quarter last year. This significant growth came from increased production output and reduced costs. Vedanta’s total income rose to Rs 41,216 crore from Rs 36,093 crore year-over-year, highlighting its improved financial performance.
As of March 31, 2025, Vedanta’s total debt stood at Rs 73,853 crore. With such a high debt load, raising capital through debentures is seen as a step toward better financial management. The funds will help the company stay on track with its restructuring efforts while managing debt more effectively.
Corporate Restructuring Progresses
Vedanta is also undergoing a major business restructuring. The company has started the process of separating its various business units through a demerger. This change aims to improve focus, increase operational efficiency, and unlock more value for stakeholders. Vedanta expects the demerger to be completed by the end of the second quarter of the current financial year.
Ajay Goel, Vedanta’s Chief Financial Officer, confirmed that the company is on track to complete the demerger as planned. The ongoing restructuring, combined with the fundraising through debentures, shows Vedanta’s focus on long-term growth, financial stability, and improved business performance in the coming quarters.
