Vedanta mulls demerger plans with eye on complete corporate overhaul

Anil Agarwal-led mining company Vedanta Ltd on November 17 announced that it is considering plans for a complete overhaul of its corporate structure. The company is evaluating all options including demergers, spin-offs, and strategic partnerships, and is looking at listing its aluminium, iron and steel, and oil and gas verticals as separate entities.

The mining firm said in a regulatory filing that the “Board of Directors of Vedanta Ltd has decided that, considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives (including demerger(s), spin-off(s), strategic partnerships etc.) for unlocking value and simplification of corporate structure.”

The company added: “Subject to a detailed evaluation, it is the intention that the aluminium, iron and steel, and oil and gas businesses would be housed in standalone listed entities.”

To ensure the plan follows through, the board of directors of Vedanta has constituted a committee of directors to evaluate and recommend such options and alternatives to the board.

The committee will focus on:

Simplification and streamlining of the corporate structure.

Unlocking value for all stakeholders.

Creation of businesses that are positioned better to capitalise on their distinct market positions and deliver long-term growth and enable strategic partnerships.

Tailored capital structure and capital allocation policies based on business-specific dynamics.

Distinct investment profiles to attract deeper and broader investor bases.

Accelerate emissions reduction and strong ESG practices.

Speaking about the overhaul plans, Vedanta Chairman Anil Agarwal said: “The step that we announced today have been designed to create independent, industry-leading, global public companies, where each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees.”