Vedanta Secures 75% Creditor Approval for Strategic Demerger

Vedanta Limited receives 75% creditor approval for its demerger scheme, paving the way for stock exchange and NCLT filings. The demerger aims to create sector-specific entities enhancing operational efficiency and direct investment opportunities. The initiative promises substantial shareholder returns and strategic growth.

Indian mining giant Vedanta Limited has secured approval from 75% of its secured creditors to move forward with its demerger scheme. This approval enables Vedanta to seek further clearances from stock exchanges and eventually file the demerger plan with the National Company Law Tribunal (NCLT).

The demerger aims to create sector-focused entities aligned with India's goals in critical minerals, energy security, renewables, and technology sectors. The move will simplify Vedanta's corporate structure by establishing five new independent businesses, offering global investors direct access to specialized companies.

Speaking at Vedanta's Annual General Meeting, Chairman Anil Agarwal stated, "The demerger of our businesses will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock massive value." Post-demerger, the existing businesses will be structured into six independent companies, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited.

The company views this strategic move as a way to enhance operational efficiencies and provide clearer investment opportunities. Shareholders will receive one share in each of the new companies for every share they hold in Vedanta Limited. Vedanta's stock rose 0.45% to 453, reflecting a 74% rise over the past year. As of June 30, 2024, the company's total shareholder return over five years stands at 276%.