Anil Agarwal runs the Mumbai-based company Vedanta Ltd. An official release says that the company’s shareholders and creditors have given the go-ahead for its plan to split into five sector-specific units.
These five businesses are called Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, Vedanta Ltd, and Hindustan Zinc Limited (HZL).
Aside from the current business, four new ones will form. Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and the Vedanta-Foxconn semiconductors business are the four new companies that will be split off from the main company.
The news came after the shareholders and creditors voted in a key meeting to go ahead with the demerger plan, the announcement said.
The company had earlier suggested six different groups. The plan was changed, though, at the start of 2025.
Vedanta demerger
Shareholders and creditors have approved the demerger of Vedanta Limited, which is involved in the discovery, extraction, and production of natural resources, such as metals and minerals. According to sources Every Vedanta shareholder will get an extra share in each of the four newly established businesses as part of the demerger process.
Vedanta demerger receives approval from shareholders, creditors.
4 companies will be demerged from
Vedanta Ltd and shareholders of
Vedanta will get 1 share of 4 newly
demerged companies for each share
held in Vedanta Ltd on record date.After demerger process Vedanta will
have… pic.twitter.com/lzocc1SfXG— Booming Bulls Academy (@BoomingBulls) February 20, 2025
The plan calls for the corporation to be divided into five separate, internationally operating businesses, each with a focus on power generation, iron ore, copper, aluminum, and oil and gas.
According to the company’s filing with the stock exchange, 99.99 percent of Vedanta Limited’s shareholders, 99.59 percent of its secured creditors, and 99.95 percent of its unsecured creditors authorized the demerger.
Vedanta Aluminium, one of the biggest producers of aluminium in the world; Vedanta Oil & Gas, the biggest producer of crude oil in India’s private sector; Vedanta Power, one of the country’s biggest power generators; Vedanta Iron and Steel, a company with a highly scalable ferrous portfolio; and Vedanta Limited, which will own Hindustan Zinc, the second-largest integrated zinc producer and third-largest producer of silver worldwide, are the five companies.
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Vedanta demerger Expected Date
The Vedanta demerger is moving along, according to the information available, and important meetings are planned for early 2025. Specifically:
On Tuesday, February 18, 2025, Vedanta has planned meetings with its secured creditors, unsecured creditors, and equity stockholders. In the demerger process, these sessions are essential.
The demerger process is expected to be completed in the first quarter of 2025, according to earlier statements made by Vedanta Chairman Agarwal.
Notably, there have been certain changes made to the demerger plan. Vedanta will now demerge into five companies instead of the six that were originally intended.
These companies will be Vedanta Limited, Vedanta Steel and Ferrous Materials, Vedanta Power, Vedanta Oil and Gas Limited, and Vedanta Aluminum Metal Limited.
Therefore, the significant shareholder and creditor meetings in February 2025 are a crucial milestone in the demerger process, even though the exact finalization date may rely on a number of procedural and regulatory considerations.
