NEW DELHI: Anil Agarwal-led Vedanta Limited announced on Wednesday that India's major stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), have given their approval for the company's proposed demerger. Vedanta Limited will be demerged into six separate listed companies.
“We are pleased to inform you that BSE and NSE, vide their letters dated July 31, 2024 and July 30, 2024 respectively, have conveyed that they have ‘no objections / no adverse observations’, on the proposed Scheme,” Vedanta said in its stock exchange filing.
The mining giant received approval from 75% of its secured creditors on Tuesday to proceed with the demerger. The planned demerger, announced in September 2023, will result in six independent entities of Vedanta Ltd: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and a residual Vedanta Limited. Vedanta will soon file an application with the National Company Law Tribunal to progress the demerger, subject to receipt of other necessary approvals from shareholders, creditors, and regulatory bodies.
At Vedanta's annual general meeting, Anil Agarwal mentioned that the demerger will create six strong companies, each with its own identity while following Vedanta's core values and leadership. “This (demerger) will unlock massive value. Each demerged entity will chart their own course but will follow Vedanta’s core values, its enterprising spirit and global leadership,” said Agarwal.
The demerger will be a simple vertical split, where shareholders will receive one share of each of the five newly listed companies for every share of Vedanta Limited held. As of June 30, 2024, Vedanta's total shareholder return over five years stood at 276%, with an average accumulated dividend yield of 65%, delivering significant value for shareholders.
Vedanta is a leading global critical minerals, energy, and technology company, having invested over $35 billion in India and pursuing rapid expansion through 50 strategic growth projects.