Vedanta said to weigh US$1 billion share sale as soon as June

INDIAN commodities tycoon Anil Agarwal’s Vedanta is considering a share sale as soon as the coming weeks that could raise as much as US$1 billion, people with knowledge of the matter said. 

Vedanta is working with advisers including Axis Bank subsidiary Axis Capital and Citigroup on the offering, the people said. It has started gauging interest from potential investors including Middle Eastern funds, according to the people, who asked not to be identified because the information is private. 

Shares of Vedanta have gained 78 per cent this year, giving the company a market value of about US$20.6 billion. 

Vedanta may raise the funds through a type of share sale known as a qualified institutional placement, once approved to do so by shareholders, the people said. It is discussing whether to launch the deal soon to take advantage of the Indian equity rally, though the timeline could change, the people said. The BSE Sensex has climbed almost 20 per cent over the past seven months. 

Details of the potential fundraising could change and there’s no certainty that Vedanta will proceed with a deal.

A Citi spokesperson declined to comment. Axis Bank and Vedanta didn’t immediately respond to emailed requests for comment. BLOOMBERG