Vedanta Base News Today

In June 2018, Vedanta had initially acquired the plant from Electrosteel Steels under the Insolvency and Bankruptcy Code. But with debt concerns around the company, Vedanta Resources is looking out for the possibility of selling the asset.

Investec sees the Vedanta demerger as a strategic move that will eventually make it easier for the promoter to consider monetisation or delisting.

The 5 new companies will be named Vedanta Aluminum, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials and Vedanta Base Metals. Vedanta will act as an incubator for Vedanta Group, while also functioning as the holding company for Hindustan Zinc.

Vedanta (VEDL) shares gained on Tuesday after the company approved restructuring that includes demerger

About a decade after combining all its businesses into Vedanta Ltd and then announcing a plan to make the company private, its chief, Anil Agarwal has now decided to split the business into six companies based on their business lines. The companies demerged from Vedanta would be Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Base Metals.

Resources conglomerate Vedanta, which faces bond redemptions exceeding $3 billion over the next 18 months at its UK-based holding company, Friday said it would demerge into six listed companies to undergird the valuations of its revenue streams as diverse as mining, energy, and non-ferrous metals.

Mumbai-listed Vedanta, which produces copper, aluminium, iron ore and crude oil, and is a subsidiary of the London-based Vedanta Resources (VRL), said the exercise was aimed at building a simplified corporate structure that would appeal to focused investors.

Agarwal, who is counted among India’s richest, had a humble beginning. His grit and mettle might have taken him places now, but the meek Patna boy who could only speak two words in English – “yes” and “no” -- had started out as a scrap dealer in the 1970s.

Vedanta demerger: For every share of Vedanta, shareholders will receive one share of each of the five newly listed companies, it said.