Vedanta Demerger: Shareholders & Creditors Approve Business Split

Billionaire Anil Agarwal-led Vedanta Limited has successfully secured shareholder and creditor approval for its proposed demerger plan. The crucial meeting, held on February 18, 2025, included equity shareholders, secured lenders, and unsecured creditors, who voted on the company’s restructuring strategy.

Vedanta's demerger aims to streamline its operations by dividing the conglomerate into independent businesses, thereby unlocking greater shareholder value and ensuring a focused approach in key sectors.

What Does the Vedanta Demerger Involve?

The company plans to split its diversified businesses into multiple separately listed entities. This move is expected to:

• Enhance operational efficiency
• Improve capital allocation
• Create sector-specific growth opportunities
• Reduce business complexities
• Maximize shareholder returns

New Entities After Demerger

Following the demerger, Vedanta will be divided into five key independent entities, focusing on:

1. Metals & Mining
2. Oil & Gas
3. Power
4. Aluminium
5. Semiconductors & Display Glass

Shareholder and Creditor Voting Outcome

During the February 18 meeting, an overwhelming majority of shareholders and creditors voted in favor of the demerger proposal.

Breakdown of Votes:

• Equity Shareholders: Approved with over 75% majority
• Secured Creditors: Gave a unanimous nod
• Unsecured Creditors: Over 80% approval

The company has now submitted the results to the Securities and Exchange Board of India (SEBI) and other regulatory authorities for final approval.

Vedanta’s Stock Performance Post Announcement

Following the announcement, Vedanta’s stock showed positive movement in early trading. On the Bombay Stock Exchange (BSE), shares closed at ₹394.20, reflecting a 2.8% increase from the previous day’s closing price.

Stock analysts believe the restructuring could enhance investor confidence and attract new institutional investments due to a more transparent business model.

Anil Agarwal’s Vision for Vedanta

Anil Agarwal, Chairman of Vedanta Resources, expressed optimism about the demerger, stating:

"This strategic move will unlock immense value for our stakeholders while enabling focused business expansion. Our core sectors will thrive independently, fostering innovation and sustainable growth."

What’s Next for Vedanta?

• Regulatory Approvals: The company awaits final approvals from SEBI, NCLT, and other authorities.
• Implementation Timeline: The demerger process is expected to be completed by Q3 of FY 2025-26.
• Investor Strategy: Analysts suggest investors should monitor the company’s post-demerger financials before making long-term investment decisions.

Conclusion

Vedanta’s demerger marks a significant milestone in India’s corporate restructuring landscape. With regulatory approvals underway, the company is set to enhance business agility, transparency, and shareholder wealth.