Vedanta Ltd. has delayed its plan to split into separate businesses. The company now expects the demerger to be finished between June and July, according to Ajay Goel, the Chief Financial Officer. He said the process is almost done and should be completed in about six months. Earlier, Vedanta had planned to finish the demerger by the end of fiscal year 2025. Shareholders and creditors will meet next month to vote on the proposal.
If the demerger is approved, Vedanta will split its different businesses into separate companies. Last month, the company changed its plan and decided to keep its base metal business within the parent company. Originally, Vedanta planned to create six new companies, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. But after talking with stakeholders and lenders, the company revised the plan.
Vedanta is also working to restart its copper business in Thoothukudi, Tamil Nadu, which is part of the base metals division. The company stated that keeping the base metals business in the parent company will not affect the overall value for its shareholders. Despite this change in the plan, Vedanta is still focused on long-term growth.
Chairman Anil Agarwal had earlier said that the demerger would help Vedanta move from managing assets to owning them. The company wants to strengthen its assets and become a leader in each of its industries. After getting approval from lenders, Vedanta went to the National Company Law Tribunal (NCLT) for approval of the demerger, and hopes to finish it by the end of this fiscal year. The demerger will make the company simpler and allow global investors to invest in separate companies.
