Categories: Business

Vedanta’s demerger gets shareholder nod: Aluminium, power, energy, steel units split

Mumbai The shareholders and creditors of Anil Agarwal-led Vedanta have approved the demerger of the company’s business into four distinct entities.

The demerged companies are Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy and Vedanta Iron and Steel.

These entities, along with the parent company Vedanta, will be listed separately on the stock exchange.

Vedanta had submitted the summary of proceedings of the meeting of the equity shareholders, secured creditors and unsecured creditors convened under the directions of the NCLT held on February 18, it said on Thursday.

This is to inform that the resolutions have been passed by the equity shareholders and creditors with the requisite majority, it added.

In 2023, Vedanta announced plans to demerge its aluminium, oil & gas, power, steel & ferrous materials, base metals and the existing listed entity.

However, last December, the company decided to exclude its base metals business from the demerger, citing ongoing efforts to explore alternative options for restarting the non-operational Tuticorin copper smelter.

Under the demerger plan, Vedanta shareholders will receive one share of each newly formed entity for every share they hold in the listed company as of the record date to be announced.

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