Indian billionaire Anil Agarwal’s company Vedanta Ltd. is reportedly considering a share sale in the coming weeks that could potentially raise up to 85 billion rupees ($1 billion), according to sources familiar with the matter. Vedanta is said to be working with advisers from Axis Capital and Citigroup Inc., and has already begun gauging interest from potential investors, including Middle Eastern funds. The company’s shares have experienced a significant 78% increase this year, resulting in a market value of approximately $20.5 billion. On Tuesday morning, the stock initially rose by as much as 2.7% before later retracting some gains.
According to sources, Vedanta is considering raising funds through a qualified institutional placement (QIP) once approved by shareholders. The company is currently discussing the possibility of launching the deal soon to take advantage of the Indian equity rally, although the timeline is subject to change. The BSE Sensex has experienced a nearly 20% increase over the past seven months.
It is important to note that the details of the potential fundraising could change and there is no guarantee that Vedanta will proceed with the deal.
When contacted for comment, a spokesperson from Citi declined to provide a statement. Axis Bank and Vedanta have not yet responded to requests for comment.
— With assistance from Rajesh Kumar Singh.