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Vedanta Kicks Off Rs 8,500 Crore QIP, Sets Floor Price at Rs 461.26

Vedanta announced plans to split into six distinct listed entities last September. At 11:10 am, the shares of the mining company were trading at Rs 462.45 price level, up by 0.65 per cent

Vedanta, the Anil Agarwal-led conglomerate, announced on Monday that the board of directors has authorized a qualified institutional placement (QIP) at a floor price of Rs 461.26 per equity share.

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"We 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 Rs 461.26 per equity share," the company said in a regulatory filing.

At 11:10 am, the shares of the mining company were trading at Rs 462.45 price level, up by 0.65 per cent on the NSE.

Last week, Agarwal informed shareholders that the conglomerate is awaiting NCLT's approval for its long-awaited demerger. Vedanta announced plans to split into six distinct listed entities namely Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd last September.

"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 per cent on the floor price so calculated for the Issue," the regulatory filing added.

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The company reported a 27.21 per cent year-on-year decline in consolidated net profit, amounting to Rs 1,369 crore for the March quarter as compared to Rs 1,881 crore recorded in the same quarter of the previous year.

Consolidated revenue from operations also witnessed a decline by 6.14 per cent year-on-year to Rs 34,937 crore, in the same quarter.

On year-to-date basis, the shares of the conglomerate have delivered a return of nearly 80 per cent on NSE.

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