Vedanta shares in focus ahead of December 19 board meet on NCD issue

Shares of Vedanta Ltd will be in focus on Friday morning after the metals & mining major said its board of directors would meet on December 19, Tuesday, to consider and approve the proposal for issuance of non-convertible debentures (NCDs) on a private placement basis, which the company said is a part of its routine refinancing that is undertaken in ordinary course of business.

"We would like to inform you that the Company proposes to hold a meeting of its duly constituted Committee of Directors on Tuesday, December 19, 2023 to consider the proposal for issuance of Non-Convertible Debentures on a private placement basis as part of its routine refinancing that is undertaken in ordinary course of business. The above issuance is pursuant to the Board of Directors’ resolution passed at its meeting held on March 28, 2023," Vedanta said post market hours of Thursday.

On December 18, Monday, the Vedanta board would be considering a second interim dividend for the ongoing fiscal. If approved, the record date for the interim dividend would be Wednesday, December 27. Vedanta had earlier in May declared its first interim dividend of Rs 18.50 per share. The stock had turned ex-dividend on May 30.

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The stock has been in news for some time amid possible delays in refinancing of the upcoming debt maturities of the parent company, Vedanta Resources (VRL), beyond the expected timelines. Promoters owned 63.71 per cent stake in the Anil Agarwal company at the end of September quarter.

On Thursday, S&P Global Ratings downgraded VRL's long-term issuer credit rating and long-term issue ratings on the company's bonds due January 2024, August 2024, and March 2025 to 'CC' from 'CCC', as it felt that a completion of a liability management exercise to extend the maturities of three of its US dollar-denominated bonds will result in a distressed exchange.

S&P Global Ratings said there is a likelihood of the rating agency downgrading Vedanta Resources' rating to 'SD' (selective default) if the company completes the transaction. "We could also lower the ratings on the company's three bonds to 'D' in that event," S&O Global Ratings said.

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