Vedanta’s shares rise following announcement of ₹8,500 crore fundraising plan

Vedanta Ltd, the mining giant, made headlines today as its shares surged 1.5% in early morning trade after announcing a fundraising plan of ₹8,500 crore. The company’s scrip opened with a gap up at ₹436.30 and reached a day’s high of ₹439.75 on the BSE. Despite trading 2.5% lower than its 52-week high of ₹448.95, the current share price of ₹437.05 has pushed the company’s market capitalization to ₹1,62,645.94 crore.

According to an exchange filing, Vedanta plans to raise funds through the issuance of equity shares, American or global depository receipts, or foreign currency convertible bonds. The Board of Directors has approved the fundraising plan, allowing the Committee of Directors to determine the structure, form of issuance, price, and terms related to the fundraising.

In addition to the fundraising news, Vedanta also declared its first interim dividend of ₹11 per equity share for the Financial Year 2024-25, totaling ₹4,089 crore. The company has been consistent in rewarding its shareholders, having declared 41 dividends since July 23, 2001.

Furthermore, Vedanta announced the formation of a continuous cast copper rod facility in Saudi Arabia through its subsidiary Vedanta Copper International VCI Company Ltd. The new facility is expected to have a capacity of 125 KTPA and will open up growth opportunities in new geographies for the company.

With a significant rise in its stock price over the past year, Vedanta has caught the attention of brokerages like Motilal Oswal and Centrum. While Motilal Oswal maintained a “neutral rating” with a target price of ₹360, Centrum upgraded the stock to “BUY” with a target price of ₹438 based on FY26 estimates. Investors and analysts are closely watching Vedanta as it continues to expand its operations and deliver value to its shareholders.