Vedanta opens QIP, sets floor price.

Vedanta Ltd has set the floor price for its Qualified Institutional Placement (QIP) issue at Rs 461.26 per share, as announced on July 15. This move follows shareholder approval on June 21 to raise up to Rs 8,500 crore through securities issuance. The QIP aims to optimize Vedanta’s capital structure and enhance shareholder value.

Citi, JM Financial, and Nuvama are likely the bankers for the QIP issue, according to CNBC-TV18. QIP allows companies to quickly raise funds by issuing shares or convertible securities to institutional investors like mutual funds, venture capital funds, insurance companies, and foreign institutional investors.

This fundraising is part of Vedanta’s strategy to reduce its standalone debt by $3 billion over the next three years. As of March 31, Vedanta’s net debt stood at Rs 56,338 crore, a reduction of Rs 6,155 crore from the previous quarter.

Recently, Vedanta’s subsidiary, Finsider International, accepted a proposal to sell a 2.6 percent shareholding worth Rs 4,379.7 crore to institutional investors. On July 15, Vedanta’s shares closed over 2 percent higher at Rs 459.45 on the NSE, marking a nearly 80 percent gain for the year.

In the future Vedanta planning to separate its business into 6 new entities. It may be a strategic move from BOD to attract investors.