Vedanta Limited, a leading diversified natural resources company in India, has announced that it plans to raise up to Rs 8,500 crore through various means, including a rights issue and bonds, to fund its growth plans. The company has also declared an interim dividend of Rs 11 per share for the current financial year ending March 2025.
The funds raised through the rights issue and bonds will be used to finance the company’s organic and inorganic growth plans, including investments in its oil and gas, zinc, and aluminium businesses. The company’s board has approved a rights issue of up to Rs 7,000 crore and a bond issue of up to Rs 1,500 crore.
The rights issue will be offered at a price of Rs 235 per share, which is a discount of 10% to the closing price of Vedanta’s shares on September 9, 2021. The issue will be open for subscription from October 5 to October 19, 2021. The company has said that the record date for the rights issue will be September 22, 2021.
In addition to the rights issue and bond issue, Vedanta has said that it may also raise funds through other means, including public or private offerings of equity shares or other securities.
Vedanta’s CEO, Sunil Duggal, said that the company’s growth plans require significant investment, and the funds raised through the rights issue and bonds will help the company achieve its goals. He added that the company remains committed to creating value for its shareholders and will continue to pursue growth opportunities in a responsible and sustainable manner.
The company’s announcement of an interim dividend of Rs 11 per share for the current financial year ending March 2025 is a positive development for its shareholders. The dividend payout represents a yield of around 6% based on Vedanta’s current share price.
Vedanta Limited is a subsidiary of Vedanta Resources Limited, a London-listed natural resources company. Vedanta Resources was founded by Indian billionaire Anil Agarwal in 1976 as a scrap metal trading business. Over the years, the company has diversified into various sectors, including mining, oil and gas, and power generation.
In India, Vedanta is a leading producer of zinc, aluminium, and oil and gas. The company operates several mines and refineries across the country and employs over 65,000 people. Vedanta’s shares are listed on the National Stock Exchange of India and the Bombay Stock Exchange.
#Vedanta #fundraising #growthplans #rightsissue #dividend #naturalresources #India
Tags: Vedanta, fundraising, growth plans, rights issue, dividend, natural resources, India
