Vedanta Ltd.'s committee of directors approved on Friday raising up to Rs 5,000 crore via issuance of non-convertible debentures on a private placement basis.
The committee approved issuance of 5 lakh unsecured, rated, listed, redeemable NCDs of face value of Rs 1 lakh each. The issue will be listed on the BSE, according to an exchange filing.
An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.
The Anil Agarwal-led company expects to complete the demerger of its businesses by the September-end, according to a PTI report.
Vedanta's profit in the fourth quarter of the financial year fell quarter-on-quarter, but met estimates. The metal producer's net profit stood at Rs 3,483 crore in the quarter ended March, as compared to a profit of Rs 3,547 crore in the previous quarter.
Shares of Vedanta closed 3.56% lower at Rs 435.55 apiece, compared to 0.33% decline in the benchmark NSE Nifty 50. It has fallen 1.19% in the last 12 months and 2% on a year-to-date basis.
Eleven out of the 16 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and one suggests 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 17.8%.
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