Vedanta will split into five companies in April; Demergers to create ‘extraordinary’ shareholder value, says Anil Aggarwal: Report

Metals and mining giant Vedanta is set to split into five separately listed companies early next month, Chairman Anil Agarwal told the Financial Times, adding that the long-delayed restructuring could create “extraordinary shareholder value”.

After the demerger, the company will operate as Vedanta, which will include its base metals business. Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel & Iron and Malco Energy will be the other four companies.

Agarwal told the FT that new entities emerging from the conglomerate would have a free hand to grow. A privately held company controlled by Agarwal will retain roughly half of each demerged entity, he added.

Will Vedanta’s market value increase?

The businessman further said in his interview with the FT that the restructuring could lead to a sharp increase in the group’s market value. “The combined market capitalization of the five companies will be much higher. People are saying, comfortably, it should double,” he said. Vedanta’s total market cap is currently Rs. 2.54 lakh crore is around.

According to S&P Capital IQ, Vedanta’s total debt is about $11 billion, while the newly carved out companies are expected to collectively carry about $7 billion in debt. The restructuring plan, first proposed in 2023, aims to simplify the group’s complex corporate structure and improve access to capital independently for each business.

Vedanta’s long-awaited demerger plan had received approval from the National Company Law Tribunal (NCLT) in December last year. When Vedanta first announced its demerger plan in 2023, it proposed splitting its Indian operations into six separately listed companies, including a standalone base metals entity. Over time, the structure was improved. Under the approved scheme, the base metals business will remain within the restructured Vedanta Limited, while four new listed companies will be carved out.

The zinc and silver business will continue through the restructured Vedanta Hindustan Zinc and is envisioned as an incubator for future ventures.

The demerger has seen significant delays, largely due to objections raised by the government.

During his interview with the FT, Agarwal also flagged India’s dependence on imported energy as a strategic threat. The prolonged closure of the Strait of Hormuz amid ongoing conflicts with Iran, the US and Israel has boosted oil and gas prices.

He said India should increase domestic oil and gas production, warning that heavy reliance on imports – more than 80% of crude needs – exposes the country to global disruptions.

Meanwhile, Vedanta recently announced for the current financial year 2025-26 Rs. 11 The ex-date of interim dividend has been changed. The company paid Rs. 4,300 crore with cumulative payout per equity share of Rs. 11 announced a third interim dividend. The Anil Aggarwal-led company set Saturday, March 28, as the record date to determine shareholders’ eligibility for the dividend.

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