Vedanta Scraps Plan to List Base Metals Business, Explores Alternative Avenues Vedanta confirmed that the share entitlement ratio for the demerger of its other five businesses remains unchanged. As part of the vertical split, shareholders will receive one share in each of the newly listed companies for every share they currently hold in Vedanta.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Mining giant Vedanta Ltd announced on Friday that it will not proceed with the creation of a separate publicly listed entity for its base metals business. The decision, made after discussions with stakeholders and lenders, reflects a strategic pivot as the company explores alternative avenues for value creation, including the potential restart of its copper operations in Thoothukudi, Tamil Nadu.
"Lenders believe the scheme would be more favourable for unlocking value and overall optimal balancing of debt allocation across residual Vedanta and resulting companies if the Vedanta base metals undertaking is retained in residual Vedanta itself," the company stated in an exchange filing.
The decision is part of a broader strategy announced in September 2023, when Vedanta revealed plans to split its commodity operations into six standalone publicly listed entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited. The goal of the restructuring is to unlock shareholder value and attract targeted investment in each sector.
While the base metals demerger has been deferred, Vedanta assured stakeholders that the move will not impact overall value creation. Shareholders will retain their beneficial interests in Vedanta's base metals business, which remains part of the legacy company, and will continue to enjoy equivalent shares in other newly created entities.
Vedanta confirmed that the share entitlement ratio for the demerger of its other five businesses remains unchanged. As part of the vertical split, shareholders will receive one share in each of the newly listed companies for every share they currently hold in Vedanta.
In an interview with Business Today TV, Vedanta chairman Anil Agarwal elaborated on the vision behind the restructuring: "Each of these companies will have the potential to grow as large as Vedanta itself. Each company will be led by a CEO who is also a stakeholder, ensuring they are run by the best experts."
Despite the adjustment in plans for its base metals business, Vedanta remains focused on creating value through strategic decisions that align with market conditions and stakeholder interests.
