Vedanta Doubles Down on Debt Cut With Rs. 2,575 Cr NCD Raise; Brokerages See 16% Upside Ahead

Shares of Vedanta Limited are in focus today after the company approved raising Rs. 2,575 crore through non-convertible debentures (NCDs) via private placement. This is Vedanta's ongoing strategy to reduce debt and strengthen its balance sheet.

Vedanta share price today was trading around Rs. 690.55, up 0.72% at the time of writing, although the stock has declined about 6.34% in the last five days, underperforming benchmarks, Sensex and Nifty 50, which fell nearly 3% during the same period.

Vedanta NCD Issue Details

Vedanta's board committee approved the NCD issue on March 16, raising a total of Rs. 2,575 crore. The issue saw strong investor demand, being oversubscribed, with an initial base size of Rs. 2,000 crore and an additional greenshoe option of Rs. 575 crore.

The company allotted 2,57,500 unsecured, redeemable, rated and listed NCDs, each with a face value of Rs. 1 lakh. The bonds carry a coupon rate of 8.95% with a tenure of three years, and have received an 'AA' credit rating due to strong creditworthiness.

Major institutional investors such as ICICI Prudential Mutual Fund, Kotak Mutual Fund and Aditya Birla Sun Life Mutual Fund participated in the issue.

Why Vedanta Raised Funds Through NCDs

Vedanta NCD issue 2026 focuses on refinancing high-cost debt, reducing interest burden, for the company that has been actively working on deleveraging, with its parent Vedanta Resources reducing net debt from $8.9 billion in March 2022 to $4.8 billion by December 2025.

Previously as well, Vedanta's board has taken a few debt reduction initiatives, including a Rs. 5,000 crore NCD issue in June 2025 and a $100 million bond issue in October 2025.

Vedanta Share Price Target and Brokerage View

Despite the recent drop in value, the Vedanta share price performance has been really strong over the medium term. The stock has given over 51% returns in the last six months and is one of the top performers in the metal and mining sector stocks.

Brokerages are bullish on Vedanta stock. According to a report by SBI Securities, the company has been given a 'Buy' rating with a target price of Rs. 825 per share, a potential upside of around 16.4% from current levels.

The brokerage in its March 10th report mentioned, "Vedanta Management targets an 80 % captive alumina mix by 1QFY27, which is expected to reduce costs by an additional $50/t - $60/t when combined with new bauxite and coal mine operationalisation. The company commissioned the 1 . 5 MTPA Train 2 at Lanjigarh and produced the first metal from the new 435 KTPA BALCO smelter. Total aluminium capacity is on a trajectory to reach 3 MTPA over the next 18 months."

The report further mentioned, "Another major trigger is the 'Vedanta demerger plan, which has already received NCLT approval. The company is targeting April 1, 2026, as the effective date, with separate listings of demerged entities expected by May 2026."

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