Vedanta Files Demerger Scheme with NCLT
Mining giant Vedanta has filed the demerger scheme with the National Company Law Tribunal (NCLT) after receiving all the required approvals, CFO Ajay Goel announced during the company's quarterly earnings report.
"We have received all the requisite approvals and have filed the demerger scheme with the National Company Law Tribunal (NCLT), taking our demerger a step closer to reality", Goel stated.
Vedanta reported first-quarter consolidated revenue of Rs 35,239 crore, marking a 1% increase quarter-on-quarter and a 6% rise year-on-year. The demerger is aimed at creating sector-focused entities aligned with leadership goals in critical minerals, energy security, renewables, and technology sectors.
The company’s shares were trading at Rs 414, up 0.18% from the previous day's close.
Post-demerger, Vedanta's existing businesses will be structured into six independent companies: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.
Last week, Vedanta announced it had received approval from 75% of its secured creditors, enabling it to obtain clearance from stock exchanges and file the demerger scheme with the NCLT.
"The demerger will help simplify Vedanta’s corporate structure by creating independent businesses and offering global investors direct investment opportunities in pure-play companies linked to India's impressive growth", the company stated in a release last week.
Earlier in July, at Vedanta’s annual general meeting (AGM), Chairman Anil Agarwal emphasized that the demerger would lead to the creation of six strong companies, each a Vedanta in its own right.
"This will unlock massive value. Each demerged entity will chart its own course but will follow Vedanta’s core values, its enterprising spirit, and global leadership", Agarwal said.
