Vedanta Ltd witnessed a significant surge in its share price, climbing nearly 7% on Thursday following the approval by its authorized committee to raise Rs 1,000 crore through secured, rated, listed, redeemable, non-convertible debentures (NCDs) on a private placement basis. The proposed debentures, each with a face value of Rs 1,00,000, will be listed on the Bombay Stock Exchange (BSE).
Known for its vertically integrated operations, Vedanta is acclaimed as one of the world’s most cost-efficient aluminium producers. The company’s strategic expansions, including the commissioning of 1.5 mtpa train II and debottlenecking initiatives at the Lanjigarh refinery, aim to enhance operational efficiency and achieve 100% captive alumina capacity of 6 mtpa.
Systematix Institutional Equities highlighted Vedanta’s ongoing initiatives, such as the commencement of mining operations at the Sijimali bauxite mine in Odisha, development of coal mines, and plans for renewable power projects, as testament to its commitment to sustainability.
“Vedanta is actively expanding its aluminium smelting capacity at Korba, BALCO, with a targeted capacity of 3.1 mt by FY26. This, coupled with increased production of value-added products (VAP), is expected to drive revenue growth and margin expansion,” stated Systematix Institutional Equities, which upgraded Vedanta’s stock to a BUY rating. They value VEDL at 5.5 times FY26 EV/Ebitda, setting a revised target price of Rs 536 per share.
Investors and industry analysts are closely monitoring Vedanta’s capital allocation strategy and debt levels at the parent company level as key indicators of future performance.