Thursday was the day when the Indian multinational mining corporation Vedanta made the announcement that they will be issuing non-convertible debentures (NCDs) in order to raise up to Rs. 2,100 crores.
The plan to issue NCDs has been given the go-ahead by the Committee of Directors of the multinational mining company Vedanta Ltd.
According to the announcement made by the corporation, it would be distributed through private placement.
Non-convertible debentures, sometimes referred to as NCDs for short, are a particular kind of debt instrument that a corporation may choose to issue in order to approach members of the general public in an effort to gain financial support. Convertible debentures may at a later time be converted into equity shares, whereas non-convertible debentures may never be converted into equity shares. Convertible debentures, on the other hand, can be converted into non-convertible debentures at any time. In general, non-convertible debentures are a mechanism by which companies may borrow money from people who are ready to lend it to such firms. These persons might give money to the business in exchange for a certain amount of ownership in the company. They promise that on a certain day in the future, not only will they repay the money that they borrowed, but also an extra quantity of money known as interest. This is their guarantee.
A worldwide natural resources conglomerate with varied operations, Vedanta Ltd. is a wholly owned subsidiary of Vedanta Resources Ltd. Its primary business is the mining of iron ore, gold, and aluminum at its mines in Goa, Karnataka, Rajasthan, and Odisha. The company’s headquarters are located in Mumbai, India.
