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Vedanta to Split Into Five Listed Companies in Early April

The move is meant to cut debt by creating simpler, stand-alone businesses.

Overview

  • Vedanta says the long-planned demerger will close in early April, with current shareholders getting stock in each new company while the promoter group keeps control.
  • The five firms will be Vedanta for base metals, Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy.
  • Management projects about $7 billion of debt across the new companies compared with roughly $11 billion at the group level before the split.
  • The company expects the demerged units to start trading on Indian exchanges by mid-May, according to Chief Financial Officer Ajay Goel.
  • Chairman Anil Agarwal says the combined market value of the five firms could top today’s roughly $27 billion for the group.