Shares of Anil Agarwal-led Vedanta were gaining on Thursday following an upgrade to the company's long-term credit rating by credit rating agency ICRA.
What Happened: ICRA hiked Vedanta’s long-term credit rating from AA- to AA on Wednesday, citing the mining major’s strengthened credit profile.
The upgrade is driven by the company’s improved credit metrics, which have been bolstered by recent successful fund-raising efforts. In July, Vedanta raised $1 billion (8,397 crore) through a qualified institutional placement (QIP), followed by an additional $400 million (₹3,358 crore) generated through the offer for sale (OFS) of Hindustan Zinc in August. These moves have provided a significant boost to Vedanta's financial position.
Vedanta has accumulated over ₹22,000 crore, thanks to existing cash reserves, stake sales and dividends from its subsidiary Hindustan Zinc. The company's parent, Vedanta Resources, is also in the process of refinancing a substantial portion of its outstanding bonds in an effort to reduce interest costs and enhance the group's financial flexibility, according to ICRA.
Earlier this week, Vedanta Ltd’s board of directors approved a third interim dividend of ₹20 per share, with a total of ₹7,821 crore to be paid out to investors.
Price Action: Vedanta’s share price was up 1.34% at ₹465.50 in early trade on Thursday.
Vedanta's stock has surged by 78% year-to-date, providing investors with 68.23% returns in the last six months, far outpacing the Nifty 50’s 12.6% return during the same period. Over the past year, the company's shares have delivered 94.52% return to investors.
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