Vedanta Secures Majority Lenders' Nod for Strategic Demerger

Mining giant Vedanta Limited has received approvals from the majority of its creditors for a proposed demerger, pushing forward its plan to split into six independent listed companies. This crucial step comes as Vedanta shows significant progress in reducing its debt, positively impacting its credit ratings.

Mining giant Vedanta Limited has achieved a significant milestone: securing approvals from the majority of its creditors for a proposed demerger. This step paves the way for the creation of six independent listed companies.

'I am happy to let all of you know that we have received the 52 percent plus the additional percentage required to reach 75 percent. We have crossed that threshold as well. Most of the lenders have approved it,' a senior Vedanta executive announced in a recent bondholder conference call.

This approval is particularly noteworthy as it comes at a time when Vedanta has shown significant progress in deleveraging, reducing its net debt by Rs 6,155 crore as of March 31, 2023, primarily driven by strong cash flows from operations and working capital release. This progress has been met with stronger credit ratings from agencies like Icra, Crisil, and India Ratings.