Vedanta Ltd Announces Demerger Of Its Business Units Into Six Listed Entities

Vedanta Limited, India's largest diversified natural resources company, approved the demerger of its diversified businesses in a move to unlock significant value for shareholders.

"Vedanta is committed to best-in-class ESG practices and has a strong focus on metals critical for transition to green economy," the company stated.

The Board of Directors of Vedanta Ltd. said, "We wish to inform you that the Board of Directors of the Company at their meeting held today, September 29, 2023, have granted their approval for demerger of diversified businesses unlocking significant value."

The company intends to list six different entities, these entities are namely:
:
• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Base Metals
• Vedanta Limited

It is intended for Vedanta's demerger to be a vertical split. For every share of the already listed entity that a Vedanta Ltd. shareholder owns, they will receive one share of each of the five newly listed entities.

With sector-focused independent businesses, the initiative is believed to streamline Vedanta's corporate structure and present a chance for international investors, including sovereign wealth funds, retail investors, and strategic investors. The full procedure is anticipated to be finished by the financial year 2025, subject to approvals.

Anil Agarwal, Chairman of Vedanta, said, "This is an exciting announcement for Vedanta, and India. Our country is on an unprecedented growth trajectory which will make us the third largest economy in the world before the end of this decade. The demand for minerals, metals, oil and gas and power is going to grow very rapidly and Vedanta's businesses are uniquely positioned to service this rising demand and reduce reliance on imports. Vedanta is also foraying into semiconductors and display glass which are of great strategic significance to India.
By demerging our business units, we believe that will unlock value and potential for faster growth in each vertical. While they all come under the larger umbrella of natural resources, each has its own market, demand and supply trends, and potential to deploy technology to raise productivity.
In line with Vedanta's ethos, each company will continue to retain a strong commitment to the well-being of our workforce, our communities and our planet. Even as we move to new ways of running our businesses, we will remain steadfast to transform for good."