Vedanta raises Rs 8,500 crore by selling 19 cr shares at Rs 440 apiece via QIP

Metal major Vedanta allocated 19.32 crore equity shares at an issue price of Rs 440 apiece on Friday as the company announced the closure of its qualified institutional placement (QIP).

It was at a discount of 4.61% or Rs 21.26 per share over the floor price of Rs 461.26.

The mining conglomerate's QIP got around three times subscription at around Rs 23,000 crore, institutional brokers said.


The QIP witnessed significant interest from foreign institutional investors (FIIs), mutual funds, insurance companies and other investors, PTI had reported, adding that prominent mutual funds like Nippon, ICICI Prudential, SBI, Mirae, and White Oak put in bids in the offer.

Apart from MFs, other investors include foreign portfolio investors and UHNIs from India.

The QIP will enable the company to deleverage its balance sheet and fund growth projects.

Vedanta's Committee of Directors authorised the opening date of QIP on July 15. The company had in its May 15 stock exchange disclosure said the proceeds may be used for prepayment of the borrowings as well as funding growth opportunities.

The mining major has various projects under execution, having high potential for increasing volume, business integration, and enhancing the range of value-added products across its businesses.

These growth projects will be the key drivers to Vedanta's near-term EBITDA target of USD 10 billion.

These include an aluminium smelter and refinery, investment in new oil and gas blocks, and expansion of its steel and iron ore businesses.