Following discussions with stakeholders and lenders, mining giant Vedanta has decided not to create a separate listed entity for its base metals business. The company announced this decision on December 20, citing ongoing efforts to restart its copper operations in Thoothukudi, Tamil Nadu, as a key reason.
Lenders believe retaining the base metals business within residual Vedanta would be more favorable for unlocking value and balancing debt allocation across the company. Vedanta assured shareholders that this move would not impact the envisioned value creation. Shareholders will continue to benefit from the value unlocking of the Vedanta Base Metals business as part of legacy residual Vedanta while receiving equivalent shares in other resulting companies.
Vedanta had initially planned to split its commodity operations into six publicly listed companies to attract substantial investment and foster sectoral growth. These entities would have included Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited. Shareholders were to receive one share in each new company for every Vedanta share they held.
While the base metals business demerger will be reconsidered later, the share entitlement ratio for the remaining five businesses will remain unchanged. This strategy is part of Vedanta’s broader efforts to optimize its operations and ensure sustained growth across its diversified portfolio.
