Vedanta's Major Overhaul: Aiming for USD 100 Billion Valuations in Demerger

Vedanta's Chairman, Anil Agarwal, announced plans to demerge the company into four independent entities, each poised to reach USD 100 billion valuation. The restructuring aims to simplify operations, manage debt, and spur growth by focusing on pure-play sectors. The demerger has received strong shareholder support.

In a strategic move to reshape Vedanta, Chairman Anil Agarwal reiterated the company's intent to demerge into four distinct entities, projecting each to potentially evolve into USD 100 billion companies. This decision follows a failed attempt to privatize Vedanta in 2020, aiming to enhance operational focus and financial stability.

The demerger will result in the formation of Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta Limited, each with specific sectoral focuses. The current Vedanta Limited will retain its powerhouse status with significant stakes in sectors like zinc and silver production.

Agarwal emphasized stakeholder benefits from the move, considering the global demand for natural resources and India's economic growth. Notably, 99.5% of shareholders support the demerger, envisioning a bright future for the involved sectors amid a shift towards a low-carbon economy.

(With inputs from agencies.)