Vedanta Ltd Raises Rs 30,000 Crore Fund
Vedanta Ltd Raises Rs 30,000 Crore Fund
Vedanta Ltd Raises Rs 30,000 Crore Fund
News summary

Vedanta Ltd, led by Anil Agarwal, has raised a substantial war chest of Rs 30,000 crore through a qualified institutional placement (QIP), offer for sale (OFS), and dividends, aimed at deleveraging and growth. The funds include Rs 8,500 crore from QIP, Rs 3,200 crore from OFS, and Rs 5,100 crore from dividends, alongside existing cash reserves of Rs 13,000 crore. The company reported a strong financial performance with a 54% year-on-year increase in profit after tax for the first quarter, totaling Rs 5,095 crore, and reduced production costs by 20% due to structural changes. Plans for a demerger are underway to enhance value creation and attract investments, further supported by debt reduction strategies. Analysts suggest that this financial maneuvering positions Vedanta to achieve its near-term target of USD 10 billion in EBITDA. Overall, Vedanta's approach reflects a strategic shift towards optimizing capital structure and driving growth through transformational projects.

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