The Anil Agarwal-led Vedanta, a diversified metal and energy conglomerate, has raised Rs 3,400 crore through the issue of non-convertible debentures.
The company has allotted 3.4 lakh NCDs of Rs 1 lakh each on a private placement basis.
It received confirmation of credit of the NCDs on January 3, it said.
Debt restructure
Meanwhile, the company’s UK-based parent Vedanta Resources, has received the backing of its bondholders to restructure portions of its debt.
The move will ease the repayment strain on the subsidiary Vedanta. The company had last year proposed a restructuring of four series of bonds maturing in 2024, 2025, and 2026 to alleviate its debt liability.
The firm has outstanding debt of $6.4 billion, including $4.5 billion due by fiscal 2025. It has been trying to extend the maturity of its debt and make amendments to certain bond terms and waivers. The company received the approval of about 97 per cent of its bondholders across the four bond series, against the mandatory threshold of 66.67 per cent, according to a regulatory filing.
Vedanta Resources said consent for the revised terms would immediately alleviate the company’s debt repayment burden. Investor approval was received despite a downturn in the company’s ratings by S&P Global Ratings in December. The rating agency suggested that the restructuring plan was brought about by a high probability of a traditional default.
In 2020, the company faced several rating downgrades by other rating agencies due to concerns about the group’s outstanding debt. Group Chairman Anil Agarwal made multiple attempts to reduce the group’s debt, including a failed bid to privatise the company.
The company’s bid to allow its unit Hindustan Zinc to acquire some of its zinc assets to reduce debt was contested by the Indian government in 2023. The government holds the largest minority stake in Hindustan Zinc at 29.54 per cent.
In December, Vedanta Resources raised $1.25 billion from financial institutions for refinancing, which incorporated a new credit facility