Vedanta Ltd. said on Tuesday that it has received approval from three-fourths of its secured creditors to propose the demerger scheme to the stock exchanges and the National Company Law Tribunal. The approval is key to the company's plan to split into six independent listed companies.
The demerger will help simplify Vedanta's corporate structure by creating independent businesses. It will also offer global investors direct investment opportunities in pure-play companies linked to India's impressive growth, the company said in a statement on Tuesday.
The business will be split into Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.
The demerger is planned to be a simple vertical split; for every share of Vedanta Ltd., the shareholders will additionally receive one share of each of the five newly listed companies.
"The demerger of our businesses will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock massive value," Vedanta Chairman Anil Agarwal said in a statement. "Each demerged entity will chart their own course, but will follow Vedanta's core values, its enterprising spirit and global leadership."
Shares of Vedanta closed 0.33% lower at Rs 446.95 apiece, as compared to a 0.09% advance in the NSE Nifty 50.
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