Vedanta to use Rs 5,000 cr NCD funds to cut debt
The mining major plans to deploy funds from the Rs 5,000 crore raised through its unsecured NCD issue to pay down a high-cost private credit facility of Rs 3,400 crore, potentially reducing its annual interest burden by at least Rs 350 crore, sources said. The remaining funds will likely be used for ongoing capex requirements, general corporate purposes, and repayment or prepayment of existing debts, sources added. The NCD offering, which closed on Wednesday, was oversubscribed with bids worth Rs 6,555 crore, indicating a 60 per cent oversubscription over its base issue size of Rs 4,100 crore.
This prompted the company to exercise its greenshoe option of Rs 900 crore, raising a total of Rs 5,000 crore. The issuance attracted heavy demand from all categories of investors, including mutual funds, insurance companies, infrastructure finance companies, corporates, and NBFCs. Among the key investors who were ICICI Prudential MF, Aditya Birla Sun Life MF, Kotak Mahindra MF, HSBC MF, Axis MF, Star Health Insurance, Reliance Insurance, Aseem Infrastructure Finance, Alpha Alternatives and Larsen and Toubro among others, sources said, adding that the unsecured NCDs have a coupon rate of 9.31 per cent for the 2.5 years series, 9.45 per cent for the 3 year series and 8.95 per cent for the 2 year series.
This is the second unsecured NCD issuance by the company in 2025. In February, the company raised Rs 2,600 crore via unsecured non-convertible debentures at a 9.40-9.50 per cent coupon rate, attracting institutional investors, including ICICI Prudential, Kotak, Nippon, Aditya Birla Sun Life, and Axis. The company's net debt stood at Rs 53,251 crore as on March 31, 2025.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
33 minutes ago
- NDTV
More Indian Students Choosing New Zealand For Overseas Education. Here's Why
As Indian students look overseas for academic and career advancement, New Zealand is emerging as a key destination of choice. While countries like the US, UK, Canada, and Australia have traditionally dominated the study-abroad landscape, changing global education policies and student priorities are prompting a shift toward newer, stable destinations. Among them, New Zealand is gaining traction for its quality education, post-study work oppoutnities, and high living standards. Surge in Indian Enrolments According to Education New Zealand (ENZ), enrolments from India rose by 34% between January and August 2024 - from 7,930 in 2023 to 10,640 in 2024. Indian students now make up 11% of all international university enrolments in the country, ranking second after Chinese students. Notably, data from IDP Education shows that the number of Indian female students in New Zealand universities doubled between 2023 and 2024, highlighting a growing preference among students seeking safe and supportive academic environments. High-Quality Education Across Disciplines New Zealand's eight universities are globally ranked, with all listed in the QS World University Rankings 2026. Leading institutions include the University of Auckland (ranked 65), University of Otago (197), and Massey University (230). These universities offer strong programmes in various fields such as Data Science, Engineering, Fintech, Business Analytics, Nursing, Hospitality, and Education. Affordable Education and Living Costs The cost of studying in New Zealand ranges between NZD 20,000 (Rs 10,26,953) to 40,000 (Rs 20,53,906) annually for international students, which remains competitive compared to the US and UK, and on par with Australia and Canada. With manageable living expenses and access to part-time work rights during study, the country offers a cost-effective option for Indian students. Flexible Post-Study Work Options One of New Zealand's key draws is its flexible post-study work (PSW) policy. International students completing at least 30 weeks of a Master's or Doctoral programme are eligible for a three-year PSW visa. In late 2024, Immigration New Zealand extended these benefits to students pursuing shorter, stackable postgraduate qualifications - allowing those completing a Postgraduate Diploma followed by a Master's to access full work rights. As of March 2025, the country's unemployment rate stood at 5.1%, offering a favourable outlook for graduates entering the job market. Focus on Bilateral Educational Ties New Zealand is also strengthening institutional ties with India. In 2024, Education New Zealand signed partnership agreements with Indian institutions and state agencies including IIM Ahmedabad, GIFT City, and the Karnataka State Higher Education Council. These collaborations aim to foster research, student exchange, and academic cooperation. Quality of Life and Community Support Beyond academics, New Zealand ranks high on global indices of peace, happiness, and work-life balance. It placed 12th on Global Finance's 2025 Happiness Index and has been ranked third on the Global Peace Index. The country also topped Remote's Global Life-Work Balance Index for the third consecutive year. With over 270,000 people of Indian origin living in New Zealand, students benefit from a culturally familiar environment and supportive diaspora networks.
&w=3840&q=100)
Business Standard
38 minutes ago
- Business Standard
Jane Street calls Sebi order 'fundamentally mistaken' over allegations
US-based trading giant Jane Street has criticised the Securities and Exchange Board of India (Sebi), calling its recent order alleging market manipulation "fundamentally mistaken" in an internal letter to staff. The firm defended its trading activity as "basic index arbitrage," countering Sebi's characterisation of the strategy as manipulative. Jane Street stated it is preparing a formal response and exploring legal options. It also claimed repeated attempts to engage with Sebi since February had been "consistently rebuffed." In the weekend letter, Jane Street accused Sebi's July 3 order of using "inflammatory language" and demonstrating a "misunderstanding of standard hedging practices and the interrelationships between derivative and underlying markets." "It's deeply upsetting to see the firm mischaracterised this way," the letter stated. "We take pride in the role we serve in markets around the world, and it's painful to have our reputation tarnished by a report based on so many erroneous or unsupported assertions." Jane Street did not respond to emailed queries by press time. Sebi's order barred Jane Street and its group entities from the Indian market and directed disgorgement of alleged "unlawful gains" totalling Rs 4,834 crore. The regulator also indicated that its probe into the group's other trading strategies continues. Jane Street asserted it provided information promptly and transparently when Sebi requested details about its trading in August 2024. The letter claims that its senior officers from Hong Kong and New York travelled to Mumbai to meet with the National Stock Exchange (NSE).
&w=3840&q=100)
Business Standard
38 minutes ago
- Business Standard
RBI to conduct 2-day VRRR auction to drain Rs 1 trillion in liquidity
The Reserve Bank of India (RBI) plans to conduct a two-day Variable Rate Reverse Repo (VRRR) auction on Wednesday for a notified amount of Rs 1 trillion. This move comes as system liquidity remains in surplus at Rs 3.4 trillion (as of Monday), despite two seven-day VRRR auctions by the central bank. The surplus liquidity has kept the overnight weighted average call rate (WACR) — the operating target of monetary policy — near the Standing Deposit Facility (SDF) rate of 5.25 percent, and much below the repo rate of 5.50 percent. 'System liquidity will only increase from here as government expenditure picks up, and from September, the CRR cut will come into effect. This could push liquidity levels to as high as Rs 5 trillion by November–December, assuming neutral impact from foreign exchange operations. So, they had to move early to ensure overnight rates remain within the policy corridor. This operation will shift the weighted average call rate closer to the repo rate and, more importantly, pull the TREPS rate above the SDF, which it had consistently fallen below despite previous 7-day VRRRs,' said Gaura Sen Gupta, Chief Economist at IDFC FIRST Bank. 'The 100 bps CRR cut will release Rs 2.5 trillion into the banking system.' The overnight WACR settled at 5.26 percent on Tuesday, while the overnight TREPS rate settled at 5.13 percent. Market participants said that the auction, maturing on Friday, is expected to draw strong demand from banks. 'Because it's a two-day VRRR, it will attract good demand from banks. The RBI may continue such short-tenure operations as long as surplus remains above 1 percent of NDTL. With overnight rates currently trading below the repo rate, the central bank is using VRRRs to keep rates within the LAF corridor, ensuring orderly liquidity conditions without aggressively draining surplus,' said V R C. Reddy, head of treasury at Karur Vysya Bank. The RBI's VRRR operations are aimed at absorbing surplus liquidity from the system and anchoring short-term rates closer to the policy repo rate. The RBI had received bids amounting to Rs 1.70 trillion at its seven-day Variable Rate Reverse Repo (VRRR) auction on Friday, against the notified amount of Rs 1 trillion. The central bank accepted Rs 1 trillion at a cut-off rate of 5.47 percent. The recent liquidity surplus can largely be attributed to higher government spending and lower-than-expected GST collections, which have eased the usual liquidity pressures. As a result, the liquidity drain was not as sharp as anticipated, experts said, adding that with the RBI already having reduced the Cash Reserve Ratio (CRR), its room for deploying other measures for liquidity withdrawal apart from VRRR is limited.
