Vedanta Debt Reducing Plan: Anil Agarwal-led Vedanta Limited has raised a fund of about Rs 30,000 crore for debt reduction and growth plans through qualified institutional placement (QIP), sale offer (OFS), and dividend. Under this, this fund of Rs 30,000 crore will be prepared after the company gets money from the existing cash reserve of Rs 13,000 crore along with the proceeds of Rs 8,500 crore from Vedanta Limited's QIP, Rs 3,200 crore from HZL's OFS and Rs 5,100 crore from the second interim dividend.

How will it be used

According to an analyst, Vedanta can use this money to rapidly improve its balance sheet, improve its capital structure, and develop its transformational projects. This will pave the way to achieving its near-term EBITDA (earnings before tax) target of $10 billion and take advantage of expansion opportunities. Vedanta has continued to post strong quarterly figures. Vedanta's net profit in the first quarter of the current financial year increased by 54 percent year-on-year and more than doubled quarter-on-quarter to Rs 5,095 crore. The company recorded the highest-ever alumina production at Lanjigarh and mined metalproductst at the Zinc India unit. It reduced the overall cost of production by 20 percent due to structural changes and other initiatives.

How much is the debt

The mining major's debt stood at Rs 61,300 crore as of June 2024. The proceeds from the private placement of non-convertible debentures and promoter stake sales between February and June will also contribute to group-level debt reduction in the near term. According to sources, the combination of strategic stake sale, debt reduceproducts,tion, and optimizing operational efficiency indicate that Vedanta's move towards reducing debt and generating free cash flow is on the right track.

Further, the proposed separation of the business into separate companies and transformational projects are expected to help the company continue this trend. The company's ongoing investments in these projects will help increase volumes, integration, and value-added product range in the business.