Debt On Vedanta Ltd: Vedanta Limited is now preparing to raise capital of ₹ 3,500 crore to manage its heavy debt. This amount will be collected through unsecured non-convertible debentures (NCDs). According to the information received from the market, this issue will be introduced in the last week of May and the duration of these debentures will be between two and a half to three years. In these, investors can get interest ranging from 9% to 9.5%. This fund will manage this fund razing like Global Investment Players like Barclay and Citibank.
Funding has been raised earlier, came ₹ 2,600 crore in February
This is not the first time the Vedanta is collecting funds. In February 2025, the company raised an amount of ₹ 2,600 crore, in which a coupon rate of 9.75% was fixed. At that time, the motive was the same – strengthening the corporate payment and financial structure.
How much debt is there on Vedanta?
- Standalone Net Debt (till 31 March 2025): ₹ 53,251 Crore
- Total debt at group level: $ 8.64 billion
- Net Debt: $ 6.23 billion
- Vedanta has to pay a loan of ₹ 11,400 crore by financial year 2026-27.
- At the same time, there is also pressure on the holding company Vedanta Resources Limited (VRL), which
- FY26 has to complete the liability of $ 920 million and $ 675 million in FY27.
Debt of $ 4 billion has been reduced in three years
Vedanta Resources has reduced a debt of about $ 4 billion in the last 3 years. This has reduced the average interest on the company’s bond to 250 basis points. Also, the deadline for loan repayment has also been increased to FY33–34.
Now the company is moving forward on the plan to reduce $ 3 billion debt in the next three years.
Deemer Plan: 6 separate institutions will be ready
Vedanta is working on a dimer plan to make her business more transparent and skilled. The target is to complete it by September 2025. The proposal came up in September 2023, under which the company will be divided into 6 independent companies.
This will operate the unit of each sector independently and investors will get more value. There is a possibility that the existing NCD issue will be issued under the Vedanta unit that survives after the demar.
Rating improves, Crisil increased confidence
- In December 2024, the rating agency Crisil increased Vedanta’s NCD rating from AA-AA.
- The reason for this was – efforts being made by promoters such as:
- Sales of stake
- Qualified Institutional Placement (QIP) and Offer for SALE (OFS)
- These measures have also increased the trust of investors and the company’s creditworks have improved.
