Mining giant Vedanta Ltd announced on February 20 that its proposed demerger plan has received approval from its equity shareholders, secured creditors, and unsecured creditors.
Key Highlights of the Demerger
The Anil Agarwal-led group aims to list its businesses separately, allowing for better valuation and investor interest. The demerger will separate Vedanta’s businesses into five independent entities:
- Aluminum
- Oil & Gas
- Power
- Steel
- Semiconductors
These businesses will be individually listed, while Vedanta Ltd will continue to control its zinc and new incubated businesses. Vedanta Resources Ltd, the London-based parent company, will remain the holding entity.
The move is expected to attract investors, particularly those interested in Vedanta’s semiconductor venture, which is a new but high-risk business.
Shareholder Benefits and Regulatory Approvals
After the demerger, the existing shareholders of Vedanta Ltd will hold shares of the five listed companies that have been formed. The company had earlier obtained approvals of BSE and NSE back in July 2023.
Vedanta’s parent company is paying down debt aggressively by paying off well over $4 billion of debt within the past two years. It also aims to repay another $3 billion within the next three years.
For the quarter ended December 2024, Vedanta Ltd registered a 77% year-on-year jump in net profit to ₹3,547 crore from ₹2,013 crore a year earlier. Both the company’s alumina and zinc divisions delivered a robust performance.
The demerger plan is also expected to add value to the shareholders and strengthen Vedanta’s presence in the market across various sectors.
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Source: Moneycontrol
News Desk
