Shares of Vedanta Ltd. surged by 1% to a day’s high of Rs 470.50 on 16 July after the company announced that it had approved the launch of a qualified institutional placement, setting the floor price at Rs 461.26 per equity share.

The company launched its QIP with an indicative price of Rs 440 per share, a 4.2% discount to Monday’s closing price, and aims to raise up to Rs 6,688 crore through this institutional share sale. Earlier this month, CNBC-TV18 reported Vedanta might raise up to Rs 8,000 crore by selling shares to institutional shareholders.

On 21 June, the shareholders approved Vedanta’s plan to raise up to Rs 8,500 crore. Furthermore, in May, the company’s board approved raising funds through equity and other equity-linked instruments. The QIP has a base size of Rs 5,016 crore, with a greenshoe option of an additional Rs 1,672 crore.
At this base price, the promoter’s dilution will be 3.1% of the total equity; with the greenshoe option exercised, the dilution increases to 4.1%. Post-QIP, both promoters and the company will face a 60-day lock-in period.

Previously, the promoters had approved the banks to sell up to 2.6% stake via block deals in the last month. The company has reported a 27% decline in the net profit for Q4 of FY 2023-24. This decline in profits was caused by lower prices of metals like zinc, copper, and aluminium, and a subdued performance in the oil and gas segment.

At 11:46 AM, the shares of Vedanta were trading 0.59% higher at Rs 462.10 on BSE.

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