Vedanta Ltd has secured overwhelming approval from its shareholders and creditors to proceed with its planned demerger into five independent, sector-focused companies, as confirmed in a stock exchange filing. The proposal was backed by 99.99% of shareholders, 99.59% of secured creditors, and 99.95% of unsecured creditors, marking a significant milestone in the company’s strategic restructuring.
As part of the demerger plan, Vedanta shareholders will receive one additional share in each of the four newly formed entities once the process is completed. This restructuring will result in five separate companies, each focusing on distinct sectors. These companies will include Vedanta Aluminium, which will continue to be one of the world’s largest producers of aluminium, and Vedanta Oil & Gas, India’s largest private-sector crude oil producer.
The other entities include Vedanta Power, a significant player in India’s power generation industry, and Vedanta Iron & Steel, which will offer a scalable portfolio in the ferrous sector. Finally, Vedanta Limited will retain Hindustan Zinc, the world’s second-largest integrated zinc producer and third-largest silver producer, while also acting as an incubator for Vedanta’s emerging technology businesses.
The demerger aims to create globally competitive companies dedicated to aluminium, iron ore, copper, oil & gas, and power generation. This move will allow for streamlined operations, optimized asset utilization, and better growth opportunities in each sector.
Furthermore, the new structure is expected to attract diverse investor groups, strategic partners, and lenders, enabling targeted expansion and deeper industry collaboration without requiring commitments across the entire conglomerate. Investors will gain the flexibility to choose sector-specific investments that align with their risk appetite and market outlook.
The demerger is also designed to facilitate sharper access to capital markets, unlocking value within the newly formed entities through focused debt and equity financing. While the proposal has cleared a critical hurdle, the demerger remains subject to statutory, governmental, and regulatory approvals, including clearance from the National Company Law Tribunal (NCLT) and other relevant authorities.
Vedanta Ltd currently operates a diversified portfolio spanning metals, mining, oil & gas, power generation, and emerging sectors. The demerger marks a transformative step in the company’s vision to enhance business focus, operational efficiency, and long-term value creation.
