Indian mining and energy group, Vedanta Ltd., has announced plans to split into six entities and list them on the stock market. The move is aimed at attracting investments and reducing the company’s debt load.
Separating into Listed Verticals
Vedanta Ltd. will divide its business into listed verticals, including aluminum, oil and gas, power, steel and ferrous materials, base metals, and Vedanta Ltd. itself. Shareholders will receive one share of each of the newly listed companies for every share of Vedanta Ltd.
Empowering Independent Growth
Once demerged, each entity will have the freedom to grow and realize its full potential. Independent management, capital allocation, and niche growth strategies will enable these entities to thrive. This initiative will also offer global and Indian investors the opportunity to invest in their preferred verticals, expanding the investor base for Vedanta assets.
Timeline and Expectations
Details regarding the timeline for the demerger have not been disclosed yet. However, this strategic move comes as Vedanta Resources, the group’s U.K.-based subsidiary, grapples with high debt. Recent rating downgrades and upcoming debt obligations have raised concerns among investors.