Can you tell me about the NCD fund that Vedanta is planning to raise?

Vedanta Ltd has just approved the raising of up to Rs4,089 crore. This amount will be raised via the private placement of debentures in the form of secured redeemable non-convertible debentures or NCDs. This is how the issue will be structured. Being a non-retail issue, the board has approved raising funds by issuing a total of 40,890 secured NCD units having face value of Rs10 lakh each. These NCDs will be issued to the potential investors at par value and will also be redeemed at par.

The interest cost component is yet to be worked, so we do not have the details as of now. Vedanta, as you must already be aware, has business interests that are widely spread across the spectrum of commodities and includes zinc, lead, silver, iron ore, steel, copper, aluminium, power, oil and gas. The latest story is that the Vedanta group has also announced plans to diversify into microchip manufacturing to bridge the big global gap in the market. Its planned outlays for chips and displays alone is to the tune of $20 billion.