Vedanta raises ₹3,400 cr via NCDs

Anil Agarwal-led Vedanta Ltd has raised ₹3,400 crore by issuing non-convertible debentures (NCDs). The metal giant has allotted 3.4 lakh NCDs of ₹1 lakh each on a private placement basis.

“We hereby inform that the Company has duly allotted, on a private placement basis, 3,40,000 nos. Secured, Unrated, Unlisted, Redeemable, Non-Convertible Debentures (“NCDs”) of face value ₹1,00,000/- each aggregating to ₹3,400 crores with the depository confirmation for credit of NCDs being received on January 03, 2024,” the company says in a filing exchange.

Amid the announcement, Vedanta shares rose 2.6% to ₹266.85 apiece on BSE today.

Vedanta, meanwhile, has received a tax order worth ₹40,880 inclusive of interest and penalty from the tax authority of Surat, Gujarat.

“The Company in respect of an Oil & Gas Block where it is an operator has received an Order from Office of The Assistant Commissioner of State Tax, Surat, Gujarat (‘Tax Authority’), confirming demand of GST related to Input Tax Credit availed by the Company which is regarded as ineligible by such Tax Authority,” the company says in a filing.

The company says the said order will not result in any significant financial impact.

“The said demand pertains to FY 2017-18 and has been issued pursuant to conduct of Departmental GST Audit. Demand issued: GST of ₹30,880 along with applicable interest and penalty of ₹10,000. (The Company’s share of demand, based on participating interest of 40%, is ₹12,352 along with applicable interest and penalty of ₹4,000),” it adds.

Separately, Vedanta Resources, its London-based parent company, has also received approval from investors to postpone the maturity of $3.2 billion in outstanding corporate bonds, the company says.

In its latest business update, Vedanta says it recorded a 7% year-on-year (YoY) increase in mined metal production. In Q3 FY24, Vedanta recorded a mined metal production of 271 kt, reflecting a 7% rise higher in YoY terms and an 8% increase sequentially.

The company achieved a refined metal production of 259 kt, marking a 1% year-on-year (YoY) increase. Sequentially, there was a 7% uptick attributed to improved plant availability. Refined lead production reached 56 kt, showing a 21% year-on-year (YoY) increase due to pyro operations on lead mode to maximise silver production and decreased 1% quarter-on-quarter (QoQ).

The metal major’s saleable silver production reached 197 tonnes, indicating a 22% year-on-year increase aligned with lead metal production.