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Vedanta considers complete overhaul of group to unlock value

Anil Agarwal’s Vedanta today unveiled plans for a complete overhaul of the corporate structure and the company will list its aluminium, iron and steel, and oil and gas businesses as seperate entities.

“The Board has decided that, considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives including demergers and spin-offs for unlocking value and simplification of corporate structure,” the company said in a filing.

The Board has also constituted a committee of directors to evaluate and recommend such options and alternatives, Vedanta said.

On Wednesday, Vedanta shares were up 1.64% to close at ₹338.20 on NSE.

The strategic objectives outlined by the Board for undertaking such an exercise are simplification and streamlining of corporate structure, unlocking value for all stakeholders, and creation of businesses which are positioned better to capitalize on their distinct market positions and deliver long-term growth and enable strategic partnerships.

Vedanta has also appointed various advisors to assist the Board in evaluating the options.

“Over the past few years, Group has materially improved the operational performance of the businesses, increased cash flows, reduced debt whilst concomitantly focusing on accelerating investments in energy transition, health and safety, diversity and ESG in general. This step, which we announced today, whilst pending a detailed evaluation, is designed to create independent, industry-leading, global public companies, where each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees, Vedanta Chairman Anil Agarwal said.

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