The board of mining conglomerate Vedanta Ltd has approved raising up to Rs 8,500 crore in a meeting held on May 16, the company said in a regulatory filing adding that the type of issuance is yet to be finalised.
The board also gave a green signal to dividend payment of Rs 11 for each share the shareholders own for the financial year 2024-25, amounting to a total payout of around Rs 4,089 crore. The record date for the dividend payment has been set at May 25, the company said.
Further, board also approved investment in Vedanta Copper International (VCI) for setting up of copper rod plant in Saudi Arabia. Post the investment, VCI shall become a direct wholly owned subsidiary of the company, according to the filing.
Last year, Vedanta announced that the company's subsidiary, Malco Energy Limited, has set up a new unit in Saudi Arabia for copper business for SA. It named the incorporated unit as 'Vedanta Copper International VCI Company Limited'.
Meanwhile, Vedanta is looking to raise cash through issue of equity shares or via by way of further public offer, rights issue, or other ways. The move comes as the company 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.
Last month, Vedanta chief financial officer Ajay Goel said in a post earnings call that cost of funding will come down in the current fiscal. "All ongoing discussions, any refinancing will be done at a lower cost than the previous one," Goel said.
In the fourth quarter, Vedanta reported a 27 percent decline in fiscal fourth-quarter profit, driven by surging finance costs and weak prices of metals such as zinc, copper, and aluminium.
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