MUMBAI: Vedanta group chairman Anil Agarwal on Wednesday reiterated the plan to go ahead with the demerger of its businesses that will create six Vedantas on their own right, and the process will see a Vedanta shareholder getting one new share in each of the new five companies for each of her equity now.
Addressing the shareholders at the annual general meeting here on Wednesday, he said as of June 2024, the total shareholder return over the past five years is 276% with an average accumulated dividend yield is 65% in the same period, putting Vedanta in the top bracket of dividend payers.
The company has so far invested over $35 billion in the country and contributes around 1.4% of the national GDP, he said, adding Vedanta is the largest private sector producer of oil, the largest producer of aluminum in the country and the sole producer of zinc and silver. Vedanta is also one of the largest generators of power and purchasers of renewable energy in the country now. The group has over the past nine years has contributed $53 billion to the national exchequer, he added.
“For every one share of Vedanta that a shareholder currently owns, she will additionally receive one share in each of the five-newly listed companies,” he told the shareholders. “The demerger will unlock massive value. Each demerged entity will chart its own course and will lend speed to our journey. Each entity will have more independence in regard to capital allocation and their growth strategies while investors will have the freedom to invest in the industries of their choice, broadening the overall investor base for Vedanta assets,” he said.
Noting that the natural resources industry has provided the very foundation for the growth and development of several developed global economies, he said with the right policy tweak especially on the supply side, India can clearly shine and maximize its potential in this area.
Vedanta is appropriately positioned in the global context too and the company will be netting as much as 70% of its topline from critical minerals in the future.
Reiterating his commitment to invest more in the country Agarwal said “our investment in growth projects is substantial at $8 billion. These include our aluminum smelter, our alumina refinery, a copper smelter in Saudi Arabia, investment in new oil and gas blocks, and expansion of our steel and iron ore businesses.”
“As of now, 50 projects under execution with high potential for increasing volume, business integration, and enhancing the range of value-added products across businesses,” he said.