Vedanta demerger: Anil Agarwal confirms April timeline, says company to split into 5 entities

According to the Financial Times, citing the company’s founder and chairman Anil Agarwal, natural resources conglomerate Vedanta will be divided into five publicly traded companies at the beginning of April.

According to Agarwal, who revealed Vedanta’s plans to the FT in an interview, the move will give the conglomerate and its new units “freedom to expand”.

Anil Agarwal stated that the new structure will lead to five separate units in aluminium, zinc, oil and gas, steel and energy. Vedanta, one of India’s largest resources companies with an enterprise value of $37 billion, has been planning a restructuring for several years.

The restructuring plan comes amid efforts to reduce debt that Vendanta has been struggling with for years. But the partition plan has faced opposition from the Indian government for years, according to the FT.

Agarwal said that after Vedanta’s demerger, the company’s collective debt across the five new entities will be around $7 billion.

Tremendous shareholder value

Speaking to the FT, Vedanta chairman Anil Agarwal stated that the new companies will bring success to the holding company.

“It will create extraordinary shareholder value,” Agarwal told the FT. That’s because new companies “have the freedom to grow” as independent entities, he said.

He said the combined market capitalization of the five startups emerging from Vedanta Ltd. would be much higher than the current $27 billion valuation.

“People say it should easily double,” he said.

Talking about the shareholding model, Agarwal stated that a private parent company controlled by him will hold around half of the shares of each new entity.

The split comes after Vedanta rejected a legal challenge to its separation from the Indian government last year, paving the way for restructuring plans.

Anil Agarwal calls for domestic energy production

In his conversation with the Financial Times, Anil Agarwal also called for India to increase domestic oil and gas production, saying New Delhi’s heavy dependence on imports is a vulnerability.

The company’s subsidiary Cairn Oil and Gas, one of five units to be split, aims to double its production over the next six years. The unit plans to produce 1 million barrels of oil equivalent per day.

To elevate Vedanta ₹2,575 crore

In early March, Vedanta Ltd. said its management committee had approved the upgrade to: ₹2,575 crore through bond issuance.

The fundraising is part of Vedanta’s efforts to diversify its sources of financing and strengthen its balance sheet as it continues to refinance its debt and reduce borrowing costs.

The Committee approved the allotment of 2,57,500 face value unsecured, redeemable, rated, listed, non-convertible debentures. ₹1,00,000 each in total ₹2,575 crore on a private placement basis, it was stated in the BSE filing on March 16.

Vedanta has seen strong investor interest in its recent debt issuance.

Vedanta Resources Ltd, the parent company of Vedanta Ltd, reduced its net debt to approximately $4.8 billion as of December 2025 from approximately $8.9 billion in March 2022.

Vedanta Ltd is a leading global producer of metals, critical minerals, oil and gas, energy and technology.