Vedanta opens QIP, sets floor price at ₹461.26 per share

Mining conglomerate Vedanta Ltd announced on July 15 the approval of the floor price for its Qualified Institutional Placement (QIP) issue, set at ₹461.26 per equity share. This strategic move aims to reduce the company’s standalone debt by $3 billion over the next three years.

As part of its ongoing efforts to optimize its capital structure and enhance shareholder value, Vedanta received shareholder approval on June 21 to raise up to ₹8,500 crore through the issuance of securities. The company is committed to financial growth and stability.

Citi, JM Financial, and Nuvama are expected to be the bankers for the QIP issue, according to CNBC-TV18 on July 11.

QIP is a method used by publicly traded companies in India to raise funds quickly by issuing shares or convertible securities to a select group of institutional investors, such as mutual funds, venture capital funds, insurance companies, and foreign institutional investors. It serves as an alternative to more traditional forms of capital raising, like Initial Public Offerings (IPOs) and Follow-on Public Offerings (FPOs).

This initiative is part of Vedanta’s broader plan to reduce its net debt, which stood at ₹56,338 crore as of March 31, down ₹6,155 crore from the preceding quarter. Last month, Vedanta’s subsidiary, Finsider International, accepted a proposal to sell a 2.6 percent shareholding worth ₹4,379.7 crore to a group of reputed institutional investors.