Vedanta Clears ₹2,575-Crore NCD Issue After Strong Demand

The three-year AA-rated notes priced at 8.95% are intended to refinance debt and cut borrowing costs.

Overview

Vedanta’s committee approved the allotment of 257,500 unsecured, redeemable, rated, listed NCDs of ₹1,00,000 each on a private placement basis.
Strong subscription to the ₹2,000 crore base issue led the company to use the ₹575 crore greenshoe, taking the offer to ₹2,575 crore.
The debentures carry a three-year tenor with an 8.95% coupon and an AA rating from ICRA.
Institutional buyers included ICICI Prudential MF, Kotak MF, Aditya Birla Sun Life MF, UTI MF, and ICICI Prudential Pension Fund, along with banks and AIFs.
The raise supports Vedanta’s deleveraging plan as its net debt-to-EBITDA improved to 1.23x with a target below 1x, while parent Vedanta Resources cut net debt to about $4.8 billion from $8.9 billion since 2022.