Vedanta head says mulling separately listing different businesses

Anil Agarwal - Vedanta Limited

Billionaire Anil Agrawal on August 25 said that Vedanta is considering separately listing all or some businesses, based on feedback from advisors.

In a video message to shareholders, the Chairman of the company which has a diversified presence in oil and gas, metals and mining said that separately listing the different businesses will help the "pure play" businesses grow.

"This means if you have one share of Vedanta Ltd, you will have many shares of other companies and people will have opportunities to invest in some areas. Some international companies want to invest in a particular area, they will get that opportunity," Agarwal said.

He added that different businesses will help the independent leadership to grow the business to the highest levels. The businesses could focus on creating value and develop several other products within a product, he said.
Agarwal said he would take this forward to the board, once it was appropriate.

In the video message, he also said that in the last two decades, Vedanta has gone into businesses that are import substitutes and are quite difficult to enter.

“Vedanta, in last two decades, has gone into the business which is more and more import substitute; very difficult for the entry into these areas. We have a business of oil and gas, the largest producer of aluminum, completely integrated power, copper, zinc, silver, lead, iron and steel, nickel, ferroalloys, semiconductor, display glass and more,” said Agarwal.

Vedanta had first announced in 2021 that it is considering plans for a complete overhaul of its corporate structure. The company’s board of directors had formed a sub-committee to evaluate a potential spinoff of its aluminum, iron and steel, and oil and gas businesses into separately listed companies. The move was aimed at simplifying and streamlining the corporate structure, unlocking value for all stakeholders, and creating businesses that are positioned better to capitalise on their distinct market positions and deliver long-term growth and enable strategic partnerships.

Agarwal had previously said that Vedanta Ltd will announce the contours of a proposal to spin off key businesses into separate listed companies by end of March 2023; it is yet to announce these details.

Vedanta has faced challenges in financing its projects and is considering different options, considering value unlocking in businesses. In fact, parent Vedanta Resources raised around $450 million from two of its rivals earlier this year, triggering concerns that the company is unable to raise money from regular debt channels and banks.