Vedanta to use Rs 8,000-crore QIP proceeds to repay Oaktree, Deutsche, Union Bank

Oaktree, Deutsche, Union Bank to get repaid from Vedanta QIP proceeds

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26 Aug, 2025 12:21

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Vedanta Limited plans to use the proceeds from its Rs 8,000-crore QIP offer to repay in part or full the debt it owes to Oaktree Capital, Deutsche Bank and Union Bank of India, the offer documents filed by billionaire Anil Agarwal’s company show.

The floor price for the qualified institutional placement offer, which opened on July 15, has been set at Rs 461.26 a share.

The primary purpose is to repay or prepay, in full or in part, certain outstanding borrowings availed by the company and one of its subsidiaries - THL Zinc Ventures Ltd, the prospectus filed by the oil and metals firm with exchanges says. A small part of the proceeds will be used for certain general corporate purposes.

As of June 25, the company owed Rs 17,470 crore to Oaktree, Deutsche Bank and Union Bank of India as of June 25.

Of these, Oaktree has an exposure of Rs 2,500 crore through debentures and a dollar-loan facility worth approximately Rs 7,470 crore.

Vedanta owes Rs 6,400 crore to Union Bank and Rs 1,100 crore to Deutsche Bank.

“The repayment/ prepayment of the borrowings by our Company and/or our Subsidiary, will help reduce our overall outstanding indebtedness, debt servicing costs, assist us in maintaining a favourable debt-equity ratio and enable better utilisation of our internal accruals for further investment in business growth and expansion,” Vedanta said in the offer document.

The repayment will help improve its debt-equity ratio and enable the company to raise further resources at competitive rates and additional funds capital to fund potential business development opportunities, the company said.

The QIP 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.

In June, Vedanta subsidiary Finsider International accepted a proposal from one of its banks to sell a 2.6 percent stake, worth Rs 4,379.7 crore, to a group of institutional investors.