Anil Agarwal-led Vedanta has raised ₹8,500 crore through allotment of 19.31 crore equity shares at an issue price of ₹440 per share for qualified institutions placement which closed on Friday.
The issue was oversubscribed three times and received interest of about ₹23,000 crore, as per institutional brokers.
The QIP witnessed interest from Foreign Institutional Investors (FIIs), Mutual Funds, Insurance companies and other investors. Prominent mutual funds such as Nippon, ICICI Prudential, SBI, Mirae and White Oak have put in bids in the offer, said the institutional broker.
Apart from mutual funds, other investors include foreign portfolio investors and UHNIs from India.
Vedanta’s Committee of Directors authorized the opening date of QIP on July 15 with a floor price of ₹461.26 per share for this issue. The company will use the proceeds for prepayment of the borrowings and funding growth opportunities.
The mining major has various projects under execution that have a high potential of increasing volume, business integration and enhancing the range of value-added products across its businesses.
These growth projects will be the key drivers to Vedanta’s near-term EBITDA target of $10 billion. These include an aluminium smelter and refinery, investment in new oil and gas blocks, and expansion of its steel and iron ore businesses.
For FY24, the company recorded its second-highest annual consolidated revenue of ₹1.42 lakh crore, and second-highest annual EBITDA of ₹36,455 crore.
Vedanta announced a plan to demerge its business units into independent pure-play companies in September last year. The demerger will create independent companies with an interest in aluminium, oil & gas, power, steel and ferrous materials, and base metals businesses, while the existing zinc and new incubated businesses will remain under Vedanta.