Vedanta Resources $500 Million Bond Issue Oversubscribed Three Times

Vedanta Resources Limited (VRL), the London-based parent of Mumbai-listed Vedanta Ltd, has successfully raised $500 million through a 7-year US dollar-denominated bond issue that drew strong investor demand, as per the news reports. 

The issue was oversubscribed 3 times, attracting bids worth over $1.6 billion, reflecting global investor confidence in the company’s financial resilience and long-term strategy.

Bond Issue Oversubscribed 3 Times

The issue was managed through Vedanta Resources Finance II plc, a wholly owned subsidiary, which confirmed that the strong response came from a wide range of investors across APAC, EMEA and the US. 

Asset managers accounted for 97% of the final allocation, showcasing significant institutional support. The regional participation was 47% from Asia, 24% from EMEA and 29% from the US.

Use of Proceeds and Debt Reduction

The company announced that net proceeds from the bond will be used to repay existing debt and for general corporate purposes. This move is part of Vedanta’s larger deleveraging strategy, aimed at replacing high-cost borrowings with longer-tenure, lower-cost debt. Since FY22, Vedanta has reduced its debt by over $4 billion, cutting gross debt from $9.1 billion in 2022 to $4.8 billion by June 2025.

Financial Strength and Performance

Vedanta Resources reported a revenue of $18.2 billion in FY25, a 6.4% year-on-year growth. The company posted an EBITDA of $5.5 billion, with a margin of 29.9%, while free cash flow after capex stood at $1 billion. These results highlight the company’s strong cash generation ability, supported by cost leadership across commodities and diversified business operations.

Read More: Lenders Tell Vedanta, Adani to Rework Jaiprakash Bids and Clarify Funding!

Vedanta Share Price Performance

On October 1, 2025, Vedanta share price opened at ₹468.55 on NSE, above the previous close of ₹465.80. During the day, it surged to ₹469.85 and dipped to ₹458.50. The stock is trading at ₹462.10 as of 2:26 PM. The stock registered a moderate decline of 0.79%.

Over the past week, it has moved up by 0.10%, over the past month, it has moved up by 5.15%, and over the past 3 months, it has moved up by 2.84%.

Conclusion

Vedanta Resources’ $500 million bond issue, oversubscribed 3 times, underscores strong investor confidence in its deleveraging journey and financial stability. With a focus on repaying debt, optimising its capital structure and ensuring liquidity, the company continues to strengthen its global credit profile ahead of future market opportunities.

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