Vedanta demerger announcement:
“” In pursuit of this goal, the Vedanta Limited Board approved a pure-play, asset-owner business
model that will ultimately result in six separate listed companies, namely:
• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Base Metals
• Vedanta Limited
The de-merger is planned to be a simple vertical split, for every 1 share of Vedanta Limited,
the shareholders will additionally receive 1 share of each of the 5 newly listed companies.
Rationale for Demerger:
- Simplifies Vedanta’s corporate structure with sector focussed independent businesses.
- Provides opportunities to global investors, including sovereign wealth funds, retail
investors and strategic investors, with direct investment opportunities in dedicated
pure-play companies linked to India’s remarkable growth story through Vedanta’s
world class assets. - With listed equity and self-driven management teams, these demergers provide a
platform for individual units to pursue strategic agendas more freely and better align
with customers, investment cycles and end markets. - Enables to better highlight, and for the market to more easily value, the remarkable
technological advances, environmental stewardship and robust growth stories within
Vedanta’s family of companies. “”
Curious to know what will be the valuation of demerged entities. In this case will the sum of parts be greater than the single entity in future?
D: Not invested, Just tracking the news.