Mining conglomerate Vedanta Ltd has officially set the floor price for its Qualified Institutional Placement (QIP) issue at Rs 461.26 per equity share, the company said in an exchange filing on July 15.
“We further wish to inform you that the ‘relevant date’ for the purpose of the issue is July 15, 2024, and accordingly, the floor price in respect of the aforesaid Issue is Rs 461.26 per equity share,” the company said in a stock exchange filing. The Company may offer a discount of not more than 5% on the floor price so calculated for the QIP.
The stock hit a 52-week high of Rs 506.85 on May 22, 2024 and a 52 week low of Rs 207.85 on September 28, 2023.
“We further wish to inform you that the ‘relevant date’ for the purpose of the Issue, in terms of the Regulation 171(b)(i) of the SEBI ICDR Regulations, is July 15, 2024 and accordingly, the floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ? 461.26 per Equity Share. Pursuant to Regulation 176(1) of the SEBI ICDR Regulations and the approval of the shareholders, accorded through a special resolution on June 21, 2024 by way of postal ballot, the Company may offer a discount of not more than 5% on the floor price so calculated for the Issue,” the firm said.
Vedanta’s shareholders had approved on June 21, to raise up to Rs 8,500 crore through issuance of securities. This strategic move is part of Vedanta’s ongoing efforts to optimize its capital structure and enhance shareholder value, reinforcing the company’s commitment to financial growth and stability, the company added.
Citi, JM Financial and Nuvama are the likely bankers appointed for the QIP issue, CNBC-TV18 reported 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 is an alternative to more traditional forms of capital raising, such as Initial Public Offerings (IPOs) and Follow-on Public Offerings (FPOs).
The move comes as Vedanta aims to reduce its standalone debt by $3 billion over the next three years. Vedanta reported a reduction in net debt to Rs 56,338 crore as of March 31, down Rs 6,155 crore from the preceding three months.
Shares of Vedanta closed 2.21% higher at Rs 459.40 on Monday. Market cap of the firm rose to Rs 1.70 lakh crore.
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