Vedanta To Raise Up To Rs 3,000 Crore Via NCD Issue

Vedanta Ltd. on Tuesday said that the committee of directors constituted by its board has approved the raising of Rs 3,000 crore via the issuance of non-convertible debentures.

The committee of directors considered and approved the issuance of unsecured, rated, listed and redeemable NCDs on a private placement basis, according to the exchange filing.

The committee has allowed the company to issue up to 3,00,000 NCDs with a face value Rs 1,00,000 each, aggregating up to Rs 3,000 crore, the disclosure added.

Earlier, in October, Vedanta Resources Ltd., the parent firm of Mumbai-based mining conglomerate Vedanta, raised $300 million by exercising the tap option on the existing bond issue. A tap issue is a procedure that allows companies to issue bonds or other short-term debt instruments from past issues.

Vedanta, in a separate exchange filing on Tuesday, said that it has received an order from office of the assistant/deputy commissioner of GST and Central Excise at Jharsuguda confirming penalty of Rs 1.08 crore, along with tax demand and applicable interest.

The issue pertains to payment of GST under reverse charge mechanism on certain supplies during the period from financial years 2017-2018 to 2019-2020, it said.

Vedanta stated that it intends to file an appeal against the said order with the appellate authorities. It is hopeful of a favourable outcome thereof and does not expect the said order to have any material financial impact on the company, it added.

Shares of Vedanta Ltd. closed 3.35% lower at Rs 421.3 apiece on the BSE, compared to a 1.32% decline in the benchmark Sensex.

With PTI inputs