Vedanta Group shines on D-Street! Mcap surges by ₹2.2 lakh crore so far in FY25; board approves fundraising via NCDs

Vedanta Group comprising, Vedanta Ltd and Hindustan Zinc Ltd, have generated the maximum wealth for investors on the Dalal Street in the current fiscal so far, with the combined market valuation of both firms surging by ₹2.2 lakh crore. The market capitalisation of the Vedanta Group surged by over ₹2.2 lakh crore between March 28 and June 20, 2024, according to stock exchange data.

This is higher than the market cap growth witnessed by leading businesses like Reliance Industries, Mahindra Group, and the Tata Group during the same period. Share prices of Vedanta and Hindustan Zinc have doubled from their 52-week lows, backed by multiple positives, including the proposed demerger, the management’s consistent focus on deleveraging, and significant improvement in earnings.

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In comparison, Adani and Mahindra groups saw their market cap rise by ₹1.4 lakh crore each. While Tata Group’s market cap rose by over ₹60,600 crore, heavyweight Reliance Industries' market valuation declined by more than ₹20,656.14 crore during this period. 

Vedanta Ltd announced on Thursday, June 20, that it will raise ₹1,000 crore through the private placement of non-convertible debentures (NCDs). The decision was taken during Vedanta's board meeting held earlier today.

The fundraising through NCDs entails the issuance of 1 lakh debentures with a face value of ₹1 lakh each. These debentures, which are secured, rated, listed, and redeemable, will be traded on the BSE.

Vedanta - Key financial metrics

Vedanta delivered its second-highest-ever revenue of ₹1,41,793 crore and EBITDA of ₹36,455 crore in FY24, with an EBITDA margin of 30 per cent despite a moderate commodity cycle.

Vedanta Group has chalked out a strategic roadmap to achieve an EBITDA of $10 billion in the near term, backed by the timely execution of more than 50 high-impact growth projects, including those in zinc, aluminium, oil & gas and power businesses. Foreign institutional investors' holding in Vedanta rose to 8.77 per cent at the end of March quarter from 7.74 per cent a quarter ago.

Also Read: Vedanta share price rises 76% year-to-date: Should you Buy, Sell or Hold the stock post strong gains?

Adding to the positive is the strengthening of commodity prices, which, along with the accrual of benefits of most cost optimisation initiatives coming from FY25 onwards, is expected to support Vedanta’s profitability, said analysts.

Vedanta and Hindustan Zinc stocks hit their all-time highs of ₹506.85 and 807 on May 22. Shares of Vedanta on Thursday jumped 4.86 per cent to ₹470.25, while Hindustan Zinc climbed 2.29 per cent to ₹647.65 on the BSE.