Vedanta to Split into Five Listed Companies as Part of Major Restructuring
India’s Vedanta Set to Demerge into Five Public Companies to Reduce Debt and Unlock Value
India-based Vedanta Limited will break up into five separately listed companies early next month, as part of a multi-year restructuring program designed to reduce debt and unlock shareholder value.
The demerger plan, approved by a tribunal in December, will see Vedanta operate as the holding company for its base metals business, while four other entities Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will be separately listed.
Anil Agarwal told the Financial Times that the combined market capitalization of the five companies is expected to be significantly higher than the conglomerate’s current $27 billion valuation.
A private parent company controlled by Agarwal will retain roughly 50% of the shares in each of the new entities.
The restructuring plan, first proposed in 2023, faced initial opposition from the Indian government, which expressed concerns that the breakup could affect its ability to recover outstanding dues.
Ajay Goel confirmed that the company intends to list the four demerged units on Indian stock exchanges by mid-May, signaling the final phase of a strategic plan to simplify the conglomerate’s structure and strengthen its financial position.
The demerger marks a pivotal moment for Vedanta, allowing the company to focus on its core operations while providing investors with clearer exposure to distinct business segments in metals, energy, and power.
SOURCE:mining.com
