INDIA's Vedanta will split into five listed companies early next month as part of a restructuring plan aimed at reducing debt, the Financial Times reported on Saturday, citing an interview with chairman Anil Agarwal.
A tribunal cleared the oil-to-metals conglomerate’s plan to split into five listed entities in December.
After the demerger, the company will continue as Vedanta Limited, which will hold its base metals business. Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will operate as separate entities.
Agarwal told the Financial Times that the combined market capitalisation of the five companies would be higher than the group’s current $27 billion.
He said a private parent company controlled by him will keep about half of the shares in each of the new entities.
The plan, first proposed in 2023, faced opposition from the government, which said a break-up could affect its ability to recover dues.
Chief Financial Officer Ajay Goel said in an interview with Reuters in January that Vedanta plans to list the four demerged units on Indian exchanges by the middle of May.
(With inputs from Reuters)
