Vedanta Ltd has raised Rs 2,575 crore through a non-convertible debenture (NCD) issue after strong demand from institutional investors. The mining major's base issue of Rs 2,000 crore was oversubscribed when it opened last week. This prompted the company to exercise a Rs 575 crore greenshoe option, taking the total issue size to Rs 2,575 crore.

The top institutional investors that took part in the fundraise include ICICI Prudential Mutual Fund, Kotak Mutual Fund and Aditya Birla Sun Life Mutual Fund among others. Other participants in the issuance included UTI Mutual Fund and ICICI Prudential Pension Fund, along with banks and alternative investment funds, sources said.

The three-year unsecured, rated and listed debentures were priced at a coupon of 8.95 per cent, lower than the cost in the company's recent borrowings. The issue has been assigned an 'AA' rating by Icra Limited.

The fundraising is part of Vedanta's efforts to diversify funding sources and strengthen its balance sheet as it continues to refinance debt and reduce borrowing costs.

Vedanta has seen strong investor interest in recent debt issuances. In October 2025, its USD 500 million bond issue was oversubscribed three times, while an NCD offering in June last year saw nearly 60 per cent oversubscription.

At the parent level, Vedanta Resources Ltd has reduced net debt to about USD 4.8 billion as of December 2025 from about USDS 8.9 billion in March 2022.

Vedanta Ltd is currently undertaking a demerger exercise that will create five separate listed entities. The demerger is aimed at unlocking value and simplifying its structure.

Vedanta shares closed 4.4 per cent lower at Rs 687.90 on the National Stock Exchange (NSE) during Friday's trading session (March 13).