Vedanta Raises ₹2,575 Crore Through NCD Issue, Strong Investor Demand Leads To Oversubscription
· Free Press Journal
New Delhi: Mining and metals major Vedanta Ltd is set to raise Rs 2,575 crore through a non-convertible debenture (NCD) issue after receiving strong interest from institutional investors.
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The company had initially planned to raise Rs 2,000 crore. However, due to strong demand, Vedanta exercised a greenshoe option of Rs 575 crore, increasing the total issue size to Rs 2,575 crore.
The issue, which opened last week, was oversubscribed, indicating strong confidence from investors.
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Several large institutional investors participated in the NCD issue. These include ICICI Prudential Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund.
Other investors include UTI Mutual Fund and ICICI Prudential Pension Fund, along with banks and alternative investment funds.
This wide participation reflects strong investor appetite for the company’s debt instruments.
Details of the Debenture Issue
Vedanta issued three-year unsecured and listed debentures with a coupon rate of 8.95 percent.
The bonds have been assigned an ‘AA’ credit rating by ICRA Limited, indicating a relatively strong credit profile.
The interest rate is also lower than the company’s recent borrowing costs, helping Vedanta reduce its overall financing expenses.
The NCD issue is expected to close this week.
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The fundraising is part of Vedanta’s broader plan to diversify its funding sources, refinance existing debt and reduce borrowing costs.
The company has been gradually improving its financial position. According to recent disclosures, Vedanta Ltd’s net debt-to-EBITDA ratio improved to 1.23 times, compared to 1.40 times earlier.
The company aims to bring the ratio below 1 time in the future.
At the parent company level, Vedanta Resources Limited has also significantly reduced its debt. Net debt declined to about USD 4.8 billion in December 2025, compared with USD 8.9 billion in March 2022.
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Vedanta has seen strong demand for its debt offerings in recent years.
In October 2025, the company’s USD 500 million bond issue was oversubscribed three times. Earlier, an NCD issue in June 2024 also saw nearly 60 per cent oversubscription.
The company’s strong operating performance, supported by higher production volumes, cost control and favourable commodity prices, has helped maintain investor confidence.
Vedanta is also working on a corporate demerger plan that will split the group into five separate listed companies, which analysts believe could help unlock value and simplify the business structure.