Vedanta had hit a new 52-week yesterday at Rs.188 and today too, it made another new high at Rs.192.15.

The company announced today that it will raise up to Rs. 1,250 crore through issuance of non-convertible debentures (NCDs).

The terms of the NCD are not yet known but because they do not get converted into equity shares, they yield a higher interest rate. NCDs are issued through a public issue and get listed on the bourses.

The NCD usually has “put” and “call” option. A “put” option means that the investor has an option to surrender the debenture if he wants to, and get back your principal. A “call” option means that the company has an option to ask the investor to surrender the debenture, and pay back the principal to you.