Home / Business and Economy / Vedanta Raises Rs 2,575 Cr via NCDs to Cut Debt
Vedanta Raises Rs 2,575 Cr via NCDs to Cut Debt
17 Mar
Summary
- Vedanta secured Rs 2,575 crore by issuing non-convertible debentures.
- The NCD issue was oversubscribed, attracting major institutional investors.
- Funds will refinance high-cost debt, reducing interest burden.
Vedanta Limited has raised Rs 2,575 crore by issuing non-convertible debentures (NCDs) through private placement. This significant fundraising effort was approved by the company's board committee on March 16, 2026, and was oversubscribed, indicating strong investor confidence.
The unsecured, redeemable, and rated NCDs carry a coupon rate of 8.95% and a three-year tenure, boasting an 'AA' credit rating. This initiative is crucial for Vedanta's strategy to deleverage and reduce its interest expenses.
Vedanta's parent, Vedanta Resources, has already made substantial progress in debt reduction, decreasing net debt from $8.9 billion in March 2022 to $4.8 billion by December 2025. This latest NCD issue follows previous debt reduction measures, including a Rs 5,000 crore NCD issue in June 2025 and a $100 million bond issue in October 2025.
Brokerages remain optimistic about Vedanta's stock, with SBI Securities issuing a 'Buy' rating and a target price of Rs 825. The company is also progressing on increasing its captive alumina mix and expanding its aluminum capacity. Furthermore, the demerger plan, with an effective date targeted for April 1, 2026, is advancing following NCLT approval, with separate listings expected by May 2026.
