Authored by : Abhinav Ranjan Updated Jun 6, 2024 | 01:59 PM IST Vedanta Limited is all set for demerger.
(Pic: ET NOW)Vedanta Demerger News, Vedanta Demerger Update: Vedanta shares on Thursday climbed more than 3 per cent on the back of an update from the State Bank of India (SBI) on the proposed demerger.
According to report in Economic Times, State Bank of India has granted its consent to Vedanta's proposed demerger.
Back in September 2023, Anil Agarwal led Vedanta Limited had announced plans to separate its six core businesses.
Vedanta Demerger RatioVedanta Limited has already announced that shareholders will get 1 share of each of the five newly listed companies for every share of Vedanta.
Authored by : Abhinav Ranjan Updated Jun 6, 2024 | 01:59 PM IST Vedanta Limited is all set for demerger. The company will split its business into 6 companies. (Pic: ET NOW)
Vedanta Demerger News, Vedanta Demerger Update: Vedanta shares on Thursday climbed more than 3 per cent on the back of an update from the State Bank of India (SBI) on the proposed demerger. The metal stock quoted 3.01 per cent higher at Rs 454.65 apiece around 1.30 PM.
According to report in Economic Times, State Bank of India has granted its consent to Vedanta's proposed demerger. The mining giant has proposed to split its existing businesses into six independent pure-play companies.
Citing two bankers aware of the development, the ET report said that the crucial approval from SBI is seen as the last major compliance requirement for the company to go ahead with its demerger plan.
Back in September 2023, Anil Agarwal led Vedanta Limited had announced plans to separate its six core businesses. The demerger will create independent companies housing the aluminium, oil & gas, power, steel and ferrous materials and base metals businesses. The existing zinc and new incubated businesses will remain under Vedanta. All the newly created companies will list on the exchanges.
Vedanta Demerger Ratio
Vedanta Limited has already announced that shareholders will get 1 share of each of the five newly listed companies for every share of Vedanta.
Earlier on April this year, Anil Aggarwal said in a letter to stakeholders said that the demerger and separate listing of will be completed by December 2024. Besides, he had also reiterated the company's target of deleveraging Vedanta Resources by $3-billion in the next three years and achieving an annual Group EBITDA of $7.5 billion within 2 years.
"FY25 will be a transformative year for us on many fronts as we prioritize disciplined growth, operational excellence, and exploring opportunities along the value chain," he wrote.
According to Aggarwal, the demerger will promote each company to leverage its own independent strengths and attract targeted investments, "ultimately driving sustainable growth and long-term stakeholder value creation".
