Vedanta Limited plans to use the Rs 8,000 crore raised from its QIP offer to partially or fully repay the debt owed to Oaktree Capital, Deutsche Bank, and Union Bank of India, according to offer documents filed by the company. The floor price for the QIP, which opened on July 15, is set at Rs 461.26 per share.

The primary aim is to repay or prepay certain outstanding borrowings of the company and its subsidiary, THL Zinc Ventures Ltd. A small portion of the proceeds will go towards general corporate purposes. As of June 25, Vedanta owed Rs 17,470 crore to these lenders: Rs 2,500 crore to Oaktree through debentures, approximately Rs 7,470 crore through a dollar-loan facility, Rs 6,400 crore to Union Bank, and Rs 1,100 crore to Deutsche Bank.

Repaying these borrowings will help Vedanta reduce its overall debt, lower debt servicing costs, improve its debt-equity ratio, and allow better use of internal funds for business growth and expansion. This move will also enable the company to raise resources at competitive rates for future business opportunities.