Vedanta Resources said on Tuesday it had raised $805 million (about Rs3,715 crore) through a convertible bond issue that was subscribed by more than 60 overseas investors, not affected by reports of the exit of some shareholders on concerns over the company's ethical lapses.
The bond issue proceeds would be used in part to refinance existing debt and to invest in the alumina project in Orissa. The project sparked off protests from activist organisations that led to the exit of some shareholders (See: Now, Rowntree Trust divests Vedanta stake over tribal rights concerns)
The London-listed Vedanta has attracted one of the biggest foreign investments in India so far, raising $4.8 billion through bond issues and ADR sales.
The company's bond issue, which opened for subscription yesterday carries a 4-per cent coupon rate and a 37.5 per cent conversion premium. Last June, the company had launched a $1-billion issue for part financing a capacity expansion programme.
Earlier shareholders such as the Joseph Rowntree Charitable Trust, Marlborough Ethical Fund and Millfield House Foundation, exited the company following allegations its bauxite mining plans at Niyamgiri in Orissa would severely impact tribals living near the project.
The value of the stake sale, however, amounted to only about £2.2 million (about Rs 14.3 crore).