NEW DELHI: Vedanta will sell its steel asset by March 2024, said Vedanta chairman Anil Agarwal on Tuesday. Agarwal, in an interview with a news channel, said that the proceeds from the sale of the steel and iron business will help the company to reduce its debt.
The sale of the steel business will also help the company concentrate on its core mining business. Vedanta entered into the steel production market through the acquisition of ESL Steel in 2018 for R5,230 crore. The company began the review of its steel and steel raw material business in June 2023.
Last week, Vedanta announced the demerger of its commodities businesses into six listed companies to unlock value and attract big investment. The company said the move will provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated companies.
The companies are Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited. “By demerging our business units, we believe it will unlock value and potential for faster growth in each vertical.
While they all come under the larger umbrella of natural resources, each has its own market, demand and supply trends, and potential to deploy technology to raise productivity,” said Anil Agarwal, Chairman of Vedanta. The de-merger 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.