Vedanta Ltd Shares Hit 14-Month Low Ahead of Key Board Meeting

21 Sep 2023 , 01:44 PM

Vedanta Ltd, led by Anil Agarwal, saw its shares reach a low not seen in over 14 months before a board meeting on September 21. The stock hit Rs 227, the lowest since July 15, 2022. This year, the stock has fallen over 25%.

The board will discuss issuing private non-convertible debentures (NCDs) as part of their routine refinancing. Vedanta Resources is in talks with global private credit funds for a $1 billion short-term loan, as per recent reports.

Vedanta Resources faces significant bond repayments, notably almost $2 billion in FY25, contributing to a total debt repayment of $3.6 billion in the next financial year. The NCD issuance might be used to help repay these bonds. Vedanta Resources has financial concerns like high debt and a $3 billion funding gap in FY25. They have taken measures like a 6% stake sale in Vedanta to address the FY24 funding gap, but the $2.2 billion bond maturity in FY25 is a more significant challenge.

Vedanta Resources has been relying heavily on dividends from its Indian unit and Hindustan Zinc. In FY2023, Vedanta Ltd. paid a dividend of Rs 101.5, exceeding the proposed delisting price.

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