Vedanta’s share price climbed nearly 2% to reach Rs. 500.40 on October 27, 2025, driven by strong investor sentiment and the successful issuance of USD 500 million in bonds. This strategic move is aimed at reducing debt and enhancing the company’s overall financial health. Analysts view this bond issuance as a sign of improved leverage and solid earnings growth, along with an attractive dividend yield of 8.66%.
Market Response and Stock Performance
At 11:10 a.m. on October 27, Vedanta shares were trading at Rs. 500.40, reflecting an increase of 1.1% from the previous close of Rs. 495.70. The stock reached an intraday high of Rs. 504.60, indicating a daily rise of approximately 1.7%. As of this time, Vedanta boasts a market capitalization of Rs. 1,96,536 crore, positioning it among the top gainers in the BSE 100 index.
During the trading session, over 8 million shares exchanged hands, with a total trading value of Rs. 40,561 lakh. The shares opened at Rs. 501 and fluctuated between a low of Rs. 497.25 and a high of Rs. 504.50. The Volume Weighted Average Price (VWAP) settled at Rs. 500.74, underscoring consistent buying interest around the Rs. 500 mark.
Impact of Bond Issuance on Investor Confidence
The surge in Vedanta’s share price follows the announcement of its parent company, Vedanta Resources Limited, successfully raising USD 500 million through a bond issuance last month. These senior bonds, issued by Vedanta Resources Finance II Plc, carry an interest rate of 9.125% and are set to mature in 2032. The overwhelming demand for this bond, which saw subscriptions reach three times the offering size with total bids exceeding USD 1.6 billion, indicates a strong endorsement of the company’s financial strategy.
The proceeds from this issuance will focus on refinancing existing debt, including a USD 550 million private credit facility, and will be allocated for general corporate purposes, as disclosed by the company.
Vedanta Resources has demonstrated a commitment to improving its balance sheet. The company highlighted in a letter to bondholders that it has extended the average maturity of its debt to over four years and significantly reduced its weighted average interest burden to single digits. Notably, Vedanta has cut its gross debt by over USD 4 billion since fiscal year 2022, with total debt decreasing from USD 9.1 billion to USD 4.8 billion as of June 2025.
Market analysts maintain a positive outlook on Vedanta’s financial trajectory. The company’s stock currently trades at a price-to-earnings (P/E) ratio of 13.49, slightly above the sector average of 12.88. This is supported by a strong trailing twelve-month (TTM) earnings per share (EPS) of Rs. 37.25, which has seen a remarkable year-on-year growth of 166%. Among the analysts covering Vedanta, 54% recommend a ‘Buy’ rating, while 31% suggest holding the stock, citing robust cash flows and improved balance sheet strength.
As Vedanta approaches its 52-week high of Rs. 526.95, some analysts suggest potential short-term consolidation as speculators may take profits following recent gains. Nevertheless, long-term investors continue to express optimism regarding the company’s strategic debt repayment, stable commodity prices, and consistent dividend payments.
In summary, Vedanta’s recent bond issuance and subsequent share price rise reflect a strengthening financial position, bolstered by a commitment to reducing debt and enhancing investor confidence. As the company continues to improve its financial standing, it appears well-positioned for sustained performance in the coming quarters.
