Vedanta gets bids 3x of Rs 8k-cr QIP

New Delhi: Mining conglomerate Vedanta Ltd’s (Vedanta) qualified institutions placement (QIP) of Rs8,000 crore got around three times subscription around Rs23,000 crore, institutional brokers said.

The QIP witnessed significant interest from Foreign Institutional Investors (FIIs), mutual funds (MFs), insurance companies and other investors.

Prominent mutual funds like Nippon, ICICI Prudential, SBI, Mirae, and White Oak have put in bids in the offer, an institutional broker said. Apart from MFs, other investors include foreign portfolio investors and UHNIs from India.

The QIP, which is likely to close on Friday, 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 with a floor price of Rs461.26 per share for this issue. 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.