Vedanta announces mega demerger: All you need to know

Vedanta , India's largest diversified natural resources company, has announced its comprehensive plan to demerge its various business units. This demerger will result in six distinct listed companies. The shareholders of Vedanta will receive one share each of the five newly created companies. The final listing and trading of these entities are expected to be completed by September 2024, subject to approval from various stakeholders, including shareholders, creditors, stock exchanges, SEBI, NCLT, and others. The rationale behind the demerger The primary reason behind this move stems from Vedanta's desire to simplify its corporate structure and create value for shareholders by establishing independent business units that focus exclusively on their respective industries. With over 90 per cent of Vedanta's profits originating from India, the company aims to capitalise on the surging demand for commodities in the country. Moreover, this demerger will facilitate improved capital allocation and faster decision-making processes. The new entities The entities emerging from this demerger will be known as: Vedanta Aluminium: Consolidating Bharat Aluminium Company and facilities in Jharsuguda and Lanjigarh, this entity will boast a total capacity of 2.4 MTPA, contributing to 41 per cent of the total domestic production. Vedanta Oil & Gas: As India's largest private oil, gas, and sweet crude producer, this entity will account for over 25 per ce