Mining conglomerate Vedanta Ltd said on February 20 that its proposed demerger scheme has received approval from its equity shareholders, secured creditors, and unsecured creditors.
The overhaul will allow the billionaire Anil Agarwal-controlled group to list its businesses — aluminum, oil & gas, power, steel and semiconductors — as separate units and improve the overall valuation of the group. The demerger is expected to help attract investors interested in some of company’s newer but riskier businesses such as semiconductors. Vedanta’s parent, Vedanta Resources Ltd., will remain the holding company.
The existing zinc and new incubated businesses will remain under Vedanta Ltd.
Post demerger, shareholders are slated to receive shares in five new listed entities demerged from Vedanta Limited. In July9 last year, the company received clearances from leading exchanges BSE and NSE.
The London-based parent has cut its debt by more than $4 billion in the past two years, and aims to repay $3 billion more over the next three years.
Vedanta Ltd on January 31 reported 77% increase in net profit at Rs 3,547 crore for the quarter ended December 31, 2024, propelled by a strong showing in its aluminium and zinc businesses.. It reported net profit of Rs 2,013 crore in the year-ago period.
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