Vedanta Ltd has officially sanctioned a fresh capital raise of up to 3,000 crore INR through the issuance of non-convertible debentures (NCDs). This move, approved by the Committee of Directors on February 25, 2026, involves the private placement of 3,00,000 unsecured, rated, and redeemable NCDs. Each instrument carries a face value of 1,00,000 INR and is slated for listing on the BSE. The decision has triggered an immediate positive reaction in the equity markets. Vedanta’s share price surged over 11% following the announcement, trading near 737 INR per share. This rally was further supported by a significant rating upgrade from BofA Securities, which raised its target price to 840 INR, citing a constructive outlook for aluminum and silver prices. Financial health indicators for the conglomerate show a robust upward trend. The company reported a 61% year-on-year jump in consolidated net profit to 5,710 crore INR for the December quarter. Its consolidated EBITDA reached a record 15,171 crore INR during the same period, with margins expanding to 41% due to operational efficiencies and lower production costs. CRISIL Ratings has assigned a 'CRISIL AA' rating to the new 3,000 crore INR NCD issuance. However, the rating remains on 'Watch with Developing Implications' as the market monitors the company's ambitious demerger process. This structural split into independent entities for aluminum, oil and gas, power, and base metals is expected to conclude by March 2026. Deleveraging remains a primary strategic focus. Vedanta Resources, the parent company, has successfully reduced its external debt to approximately 4.8 billion USD as of late 2025. The current fundraise is designed to further optimize the group's capital structure and reduce overall borrowing costs by refinancing higher-interest debt. The mining and metals sector is currently buoyed by strong domestic demand, which is projected to grow by 7% to 10% in 2026. Vedanta is positioned to capitalize on this through its major capacity expansions, including the commissioning of the BALCO smelter. Analysts expect the company's annual EBITDA to exceed 50,000 crore INR for the full fiscal year. Investors continue to be drawn by the company’s aggressive dividend policy. Vedanta distributed significant payouts in 2025 and is expected to maintain an attractive yield of over 6% into 2027. This consistent cash return, combined with strategic debt management, has solidified its position as a key player in the diversified metals and mining space.