Vedanta Board Clears ₹3,000 Crore Non Convertible Debenture Issue
Vedanta Ltd has approved a proposal to raise up to ₹3,000 crore through the issuance of non convertible debentures. The decision was cleared by the company’s board on Wednesday, February 25.According to the company’s exchange filing, Vedanta will issue unsecured, rated, listed and redeemable non convertible debentures through a private placement route. The company plans to issue up to 300,000 NCDs, each with a face value of ₹1,00,000, aggregating to a total fundraising of up to ₹3,000 crore.
The proposed debt issuance is structured as a private placement and will add to the company’s funding avenues as it continues to manage its capital structure.
BofA Securities Upgrades Vedanta to Buy, Raises Target to ₹840
In a separate development on the same day, BofA Securities upgraded Vedanta’s stock rating from neutral to buy and sharply increased its price target.The brokerage raised its target price by 75 percent to ₹840 from ₹480 earlier. The upgrade is based on its positive outlook on aluminium, supportive silver prices and an estimated dividend yield of around 6 percent.
BofA also highlighted significant deleveraging at the parent company level, stating that this reduces the risk of any increase in the inter corporate loan fee rate.
Higher Aluminium Forecasts Drive EBITDA Estimate Revision
Factoring in higher aluminium forecasts, an improved fair value for Hindustan Zinc, depreciation of the rupee against the US dollar and a reduction in the holding company discount to 5 to 15 percent, BofA has raised its EBITDA estimates for Vedanta for FY26 to FY28 by 16 to 21 percent.The brokerage’s revised target of ₹840 is currently the third highest among tracked estimates, after those issued by Citi and Systematix Group.
Analyst Sentiment and Stock Performance
Vedanta is currently tracked by 15 analysts. Of these, 11 have assigned a buy rating, while four recommend holding the stock. None have issued a sell recommendation.Shares of Vedanta were trading 4.09 percent higher at ₹723.55. The stock has advanced 20 percent in the first two months of the year, reflecting renewed investor interest amid positive brokerage commentary and strategic financial moves.
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