Vedanta Shares Gain Over 1% After Q3FY24 Update, Debt Restructuring Plan Gets Support From Bondholders

Vedanta Share Price Update Jan 4, 2024: Vedanta shares saw buying interest in the early morning trade on Thursday. Today, Vedanta's stock price opened at Rs 270 per share on NSE, and went on to touch an intraday high of Rs 270.65 per share levels. Shares of Vedanta Ltd gained 1.27% at Rs 267 apiece at 12:33 pm IST today. At this price, the mining major has a market cap of Rs 99,249.15 crore.

Vedanta shares rallied a day after the Anil Agarwal-led company gave an update on production for the October to December 2023 quarter and after the firm's London-based parent company Vedanta Resources got the nod from investors to delay the maturity of a cumulative $3.2 billion of its outstanding corporate bonds.

Vedanta Ltd Q3FY24 Business Update:

In its production release for the 3rd quarter of the current fiscal, the company saw 7% YoY and 8% QoQ growth in mined metal production at 271kt, driven by a mix of improved mined metal grades and higher ore production at Rampura Agucha and Sindesar Khurd Mines.

The company's refined metal production grew 1% YoY at 259kt. Sequentially, up by 7% resulting from better plant availability. Refined lead production was at 56kt, up 21% YoY on account of pyro operations on lead mode to maximize silver production and down 1% QoQ.

Saleable silver production was 197 tonnes, up 22% YoY in line with lead metal production. It is up 9% QoQ in line with lead metal production and higher WIP accumulation in the base period.

9MFY24:

For the nine months that ended December 31, 2023, Vedanta reported the highest-ever nine months of Mined Metal and silver production.

• Mined metal production at 780kt, up 2% YoY driven by improved mined metal grades.
• Refined metal production at 760kt, marginally lower YoY. Refined lead production was at 163kt, up 4% YoY on account of pyro operations on lead mode to maximize silver production.
• Saleable silver production at 556 tonnes, up 5% YoY in line with lead metal production.

Vedanta Resources Gets Nod From Investors For Bond Restructuring Proposal

Vedanta Resources, London-based parent company of Vedanta Ltd said on Wednesday that it has received investors' consent for delaying the maturity of corporate bonds worth $3.2 billion. The company is scheduled to meet the bond investors today (Jan 4), to discuss the restructuring plan in detail.

Raising capital for repayment of maturing debt has been a regular challenge for Vedanta in the last few months. Last year, amidst the liquidity crisis in the global markets, the company found itself in a tight spot. It had approximately $2 billion of bonds maturing in 2024, including $1 billion this month.

To cut its debt load the miner is looking to pay $779 million by early February for notes due this year and 2025, and plans to extend the maturity on the remaining principal by as many as four years.

Vedanta Ltd Stock Price Performance:

In the last three months, Vedanta shares have gained 19.52%. The share price of Vedanta Ltd has fallen 13.41% in the last one year, and it is down 20.36% in the last two years.

About Vedanta Ltd:

Vedanta Limited ("Vedanta"), a subsidiary of Vedanta Resources Limited, is one of the world's leading natural resources companies spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass Substrate and foraying into semiconductors and display glass.