A fundraising of up to Rs 8,500 crore was approved by the board, according to Vedanta Ltd. on Thursday. The firm, managed by Anil Agarwal, stated that the format for the fundraising would be decided by the committee of directors. The plan involves the issuance of stocks and other financial instruments.
For the fiscal year 2024–2025 (FY25), the metals–to–oil conglomerate has announced its first interim dividend of Rs 11 per equity share, or Rs 4,089 crore. "The record date for the purpose of payment of dividend shall be Saturday, May 25, 2024, and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law," Vedanta said.
In the current fiscal year, the firm is seeking money for the second time. It declared this month that it will use debt instruments to raise up to Rs2,500 crore. In the current fiscal year, the firm is seeking money for the second time. It declared this month that it will use debt instruments to raise up to Rs2,500 crore.
Vedanta is currently undergoing division into six distinct branches. The company's net debt as of March 31, 2024, was Rs 56,338 crore, an increase of around 25% from the previous year. Its cash and cash equivalents for the entire year decreased from Rs6,926 crore to Rs 2,812 crore. The statements were released today after market hours. Vedanta's stock fell 0.96 percent to Rs. 433.20 in the end.
Rising commodity prices, according to Nuvama Institutional Equities, enhance cash flows and may lead to an increase in valuation multiples. It implied that there should be a large reduction in the company's debt load. It further stated that Vedanta's debt probably peaked in FY24. With an estimated FY26 EV/Ebitda multiple of 4.2 times, Antique Stock Broking has raised its price objective on Vedanta to Rs 411 from Rs 318, in line with global peers.
