NEW DELHI: Anil Agarwal-led Vedanta Limited has received approval from 75% of its secured creditors to proceed with its proposed demerger. With creditors’ approval, Vedanta can now seek clearance from stock exchanges and file its demerger scheme with the National Company Law Tribunal (NCLT).
The company, in September 2023, planned to demerge into six independent entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and a residual Vedanta Limited.
The demerger aims to simplify Vedanta’s corporate structure by creating standalone businesses, offering global investors direct access to pure-play companies tied to India’s growth story.
“The demerger will create six strong companies, each a Vedanta in its own right, unlocking massive value. While each entity will chart its own course, they will adhere to Vedanta’s core values, entrepreneurial spirit, and global leadership,” said Agarwal during the annual general meeting.
The demerger is planned to be a simple vertical split for every 1 share of Vedanta Limited, the shareholders will additionally receive 1 share of each of the 5 newly listed companies.
The company said Vedanta has a track record of giving strong returns to its shareholders. Till June 2024, Vedanta’s total shareholder return over 5-years stood at 276%, while the 5-years average accumulated dividend yield at 65%, delivering significant value for shareholders.
Vedanta recently announced the closure of its QIP, through which it raised the entire Rs 8,500 crore for which it had secured approval from the board and the shareholders.
Creating separate entities
Demerger aims to simplify Vedanta’s corporate structure by creating standalone businesses, offering global investors direct access to pure-play companies