“The company has already started discussions with a few investors, including mutual funds, and after receiving board approval today, things should accelerate, ideally targeting completion of this round in the first half of March,” one of the sources said.
Indian government bonds rose today. Strong buying by the ‘other’ investor category pushed up prices. This group includes insurers, pension funds and possibly the Reserve Bank of India. Such purchases indicate greater liquidity in the market. This activity could lead to further bond price gains. The central bank has actively provided liquidity injections this financial year.
Vedanta did not immediately respond to an email from Reuters seeking comment.
Last June, the company raised a total of 50 billion rupees through a combination of two-year bonds, 30-month bonds and three-year bonds.
Vedanta Chief Financial Officer Ajay Goel said last month that the company aims to list the four planned demerged units on Indian stock exchanges by mid-May.
Vedanta’s restructuring will spin off four businesses – steel and ferrous metals, oil and gas, aluminum and energy – into separately listed companies, while the base metals unit will remain with the parent. ($1 = 90.9390 Indian Rupees)
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