Vedanta Share Price Up 2% to Rs. 500.40 on Debt Reduction Optimism

Overview:

• Vedanta share price jumped almost 2%, trading over Rs. 500, on the back of firm buying and bullish investor sentiment.

• The firm sold $ 500 million worth of oversubscribed bonds to retire debt and build its balance sheet.

• Analysts are optimistic, pointing to better leverage, good earnings growth, and a rich dividend yield of 8.66%.

Vedanta, the metals and mining diversified major controlled by billionaire Anil Agarwal, rose almost 2% on October 27, as investor sentiment improved in the wake of the company's recent USD 500 million bond issue. The action indicates that there is renewed faith in Vedanta's debt management strategy and financial health. Let’s explore Vedanta share price analysis in detail based on Moneycontrol data. 

Stock Performance: Vedanta Trades Firm on Positive Momentum

At 11:10 a.m. on October 27, 2025, Vedanta shares were trading at Rs. 500.40, having increased by 1.1% (Rs. 4.70) from their last close of Rs. 495.70. The stock reached an intraday high of Rs. 504.60, which is a rise of approximately 1.7% for the day.

Vedanta share price chart on TradingView shows gains of 1.67%: 

On BSE, Vedanta shares command a market capitalization of Rs. 1,96,536 crore as of now, making it one of the top gainers in BSE 100 index. The trading volume during the day was over 8 million shares, with the value traded being Rs. 40,561 lakh, reflecting high market participation.

The counter opened at Rs. 501 and traded between a low of Rs. 497.25 and a high of Rs. 504.50, evidencing good intraday volume. The VWAP (Volume Weighted Average Price) was Rs. 500.74, indicating uniform buying interest in the Rs. 500 range.

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Vedanta Bond Issuance Boosts Investor Sentiment

Vedanta share rally follows companies’ disclosure that its parent company, Vedanta Resources (VRL), raised $ 500 million in a successful bond issuance last month. The senior bonds, offered by Vedanta Resources Finance II Plc, have an interest rate of 9.125% and are due to mature in 2032. The issue saw an overwhelming response with three times the offering size being subscribed, and total bids crossing $ 1.6 billion.

The proceeds of this issuance will be utilized to refinance outstanding debt, including a $ 550 million Private Credit Facility, and for general corporate purposes, as per the company disclosure.

Strengthening Balance Sheet and Debt Reduction Strategy

Vedanta Resources underscored in a bondholder letter that it has now lengthened the average maturity of its debt book to more than four years while reducing its weighted average interest burden to single digits.

That constitutes a considerable enhancement in the company's capital structure, running in line with its overall deleveraging plan. According to Press Trust of India (PTI), the firm has achieved significant leverage reduction. Hence, it has reduced its gross debt by over $4 billion since FY22. Total debt has come down from $ 9.1 billion in FY2022 to $ 4.8 billion as of June 2025, highlighting management's focus on fiscal discipline.

Analyst Outlook: Earnings and Stability Positive

Market analysts remain largely bullish on Vedanta shares’ medium-term prospects. The stock currently trades at a P/E ratio of 13.49, slightly above the sector average of 12.88, supported by a strong TTM EPS of Rs. 37.25, which has grown 166% year-on-year. Out of 13 analysts tracked, 54% recommend a ‘Buy’, while 31% suggest holding the stock, citing robust cash flows, an attractive dividend yield of 8.66%, and improved balance sheet strength.

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Outlook: Consolidation on Cards After Steep Gains

Vedanta stock, which is close to its 52-week high of Rs. 526.95, is likely to consolidate in the short term as speculators take profits following the recent upsurge. Long-term investors, however, continue to look at the stock positively, considering its strategic debt repayment, stable commodity prices, and record of consistent dividend payment. As the business improves its financial standing and trims costs, Vedanta share price seems to be in a good position to maintain momentum in the next few quarters.

FAQs

1. Why did Vedanta's share price increase today?

The share price of Vedanta increased by nearly 2% following news that it had successfully issued $500 million in bonds. The action was interpreted as an encouraging step towards paying down debt, enhancing investor perceptions, and strengthening market trust in the company's financial handling.

2. Why is Vedanta's $500 million bond issue important?

The bond issue enables Vedanta Resources to refinance some of its outstanding $550 million private credit facility and push out its debt maturity to 2032. The bond's oversubscription indicates strong investor confidence in Vedanta's long-term stability.

3. How much debt has Vedanta shaved in recent years?

Vedanta Resources has lowered its overall gross debt by over $4 billion since FY22. Its debt has fallen from $9.1 billion in 2022 to $4.8 billion as of June 2025, a major deleveraging achievement.

4. What are analysts opining regarding the outlook for Vedanta's stock?

Vedanta has a predominantly positive or ‘Buy’ recommendation from most analysts. Of 13 analysts covering Vedanta, 54% give it a Buy rating, citing strong cash flows, improving leverage, and a high dividend yield. Some believe in short-term consolidation but long-term stability.

5. Is Vedanta a good stock for long-term investors?

Vedanta's stable dividend yield, solid commodity portfolio, and debt reduction focus make it a good bet for long-term investors. Though short-term fluctuations are probable, the company's fundamentals are solid for long-term performance.