Vedanta Demerger Date Nears: How Will Shareholders Of VEDL Get Stocks Of Demerged Companies - Explained

Anil Agarwal-led Vedanta is all set to demerge its business with the tentative demerger date in January 2025. The Vedanta Limited Board had, in 2023, approved a pure-play, asset-owner business model that will ultimately result in the creation of five separate listed companies. With Vedanta set to get subdivided in separate entities, what will happen to its shareholders?

Vedanta Demerger: What Did Vedanta Say?

“We wish to inform you that the Board of Directors of the Company at their meeting held today, September 29, 2023, have granted their approval for demerger of diversified businesses unlocking significant value,” Vedanta had said in an exchange filing last year.

Here is the list of companies post Vedanta demerger

• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Limited

While Vedanta had initially listed Base Metals as one of the companies to be demerged, the board on December 20, decided to do away with the move. With this, Vedanta Base Metals will continue to remain a part of the parent company Vedanta Limited. Vedanta declared on December 20 that, following talks with its lenders and stakeholders, it will not establish a distinct public company for its base metals division.

"Lenders believe the scheme would be more favourable for unlocking value and overall optimal balancing of debt allocation across residual Vedanta and resulting companies if the Vedanta base metals undertaking is retained in residual Vedanta itself,” it said in an exchange filing.

Vedanta Plan Post Demerger: Will Vedanta Shareholders Get Shares Of Demerged Companies?

For every share of Vedanta Limited, the owners will also receive one share in each of the to-be listed firms as part of the demerger, which is intended to be a straightforward vertical split.

“Once demerged, each independent entity will have greater freedom to grow to its potential and true value via an independent management, capital allocation and niche strategies for growth. It will also give global and Indian investors potential to invest in their preferred vertical, broadening the investor base for Vedanta assets,” the company said.

Vedanta Portfolio

Among Indian and international businesses, Vedanta has a unique asset portfolio that includes metals and minerals (zinc, silver, lead, aluminium, chromium, copper, nickel); oil and gas; a traditional ferrous vertical that includes steel and iron ore; power (coal and renewable energy); and semiconductor and display glass manufacturing.

Vedanta Ltd Share Price Today

The share price of Vedanta Limited is Rs 451.10 on the National Stock Exchange ( NSE ) as on December 27, 2024. The market capitalisation of the company is roughly Rs 1,76,398 crore. On December 16, 2024, the stock reached a 52-week high of Rs 526.95, and on March 13, 2024, it fell to a 52-week low of Rs 249.50.