Indian Conglomerate Vedanta to Split Into Five Companies Next Month
India’s Vedanta will be split into five listed companies early next month as part of a one-year restructuring program aimed at reducing debt, the Financial Times reported on Saturday, citing an interview with Chairman Anil Agarwal.
A court approved a plan to split the oil-to-metals conglomerate into five listed entities in December.
Following the demerger, the company will operate as Vedanta Limited, which will house its base metals operations. Vedanta Aluminum, Talwandi Sabo Power, Vedanta Steel and Iron and Malco Energy will be the other four entities.
The combined market value of the five companies would be much higher than the conglomerate’s current $27 billion, Agarwal told the FT.
A private parent company controlled by Agarwal will hold about half the shares in each of the new entities, he said.
The plan, first introduced in 2023, was opposed by the government, which feared separation would hamper its ability to recover money owed.
Vedanta aims to list four units planned to be demerged on Indian stock exchanges by mid-May, Chief Financial Officer Ajay Goel told Reuters in an interview in January.
