Shares of Vedanta reached a 14-year peak of Rs 438.30, climbing 6% on the Bombay Stock Exchange during Tuesday’s intra-day trade, buoyed by heavy trading volumes.
This significant uptick follows the company’s announcement that its board will convene on Thursday, May 16, to discuss a fundraising plan.
Alongside these deliberations, the board is set to review the potential distribution of a first interim dividend on equity shares for the financial year 2024-25.
Vedanta is currently trading at its highest level since May 2010, with the stock having appreciated by 75% over the past two months.
Vedanta board to consider multiple financing options
In a recent exchange filing, Vedanta outlined that its board would explore various fundraising strategies, including the issuance of equity shares or other convertible securities.
This move aligns with Vedanta Group Chairman Anil Agarwal’s earlier statement about the group’s intent to invest $20 billion across its businesses in India over the next four years, focusing on sectors such as technology, electronics, and glass, among others.
Operational highlights and future prospects
Vedanta, a subsidiary of Vedanta Resources, operates globally with significant interests in a range of sectors including oil and gas, metals, and now branching into electronics and display glass manufacturing.
For the fiscal year 2024, Vedanta anticipates its consolidated operating profitability (Ebitda) to be around Rs 34,500 crore, supported by reduced cost pressures and stable operating rates across key business segments.
The company also reported its second-highest-ever annual revenue of Rs 1.42 trillion for FY24, with an EBITDA of Rs 36,455 crore. This was achieved despite a moderate commodity cycle, primarily through extensive cost optimization efforts amounting to about Rs 10,000 crore year-on-year.
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