Vedanta Secures Creditors' Approval for Demerger
Vedanta, controlled by Anil Agarwal, has received approval from its creditors for its planned demerger, surpassing the required 75% support with an overwhelming 83%. This significant milestone clears the path for Vedanta to divide the mining conglomerate into five distinct businesses.
Restructuring for Enhanced Value
The restructuring aims to enable separate listings of the divided businesses, which include:
- Aluminum
- Oil & Gas
- Power
- Steel
- Semiconductors
This strategic move is expected to enhance the overall worth of the Vedanta group by attracting investors particularly interested in specific sectors, including the company's newer and potentially riskier venture into semiconductors.
Demerger Details
- Vedanta's parent company, Vedanta Resources, will remain the holding entity.
- Shareholders will receive one share in each new entity for every Vedanta share they own.
Approvals and Modifications
The demerger scheme, initially approved by the board in September 2023, has received No Objection Certificates from both the BSE and NSE. While the initial plan involved a six-way division, it was later modified to create five separate entities.
Debt Reduction Efforts
The London-based parent company has successfully reduced its debt by over $4 billion in the past two years and intends to clear an additional $3 billion over the next three years. On Tuesday, Vedanta's shares closed at Rs 417 on the BSE, reflecting a modest increase of 0.3%.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment