During an Investor Call on Q4 financial results, Vedanta Resources CEO Deshnee Naidoo said the demerger is now in its final stage.
“In the next week, we will be filing with the exchanges for listing approval. The shares of the resulting companies are expected to list and commence trading by mid-June,” she said.
Vedanta Ltd is the Indian arm of Vedanta Resources.
Vedanta CFO Ajay Goel said the company’s board has earlier approved Vedanta demerger effective from May 1, and this will entail the creation of five independent sector-specific pure play companies, allowing each company to chart out its own growth trajectory and attract investors.
The company, he said, has set May 1 as the record date for demerger and added that the shareholders holding one share of Vedanta as on April 29 will receive four additional shares of the resulting companies.
“We are targeting listing and commencement of trading of these shares by the first quarter of FY’27,” he said. The demerger has been structured with precision on capital structure, aligning debt with the earning strength and growth stage of each resulting company, he said.
Vedanta Oil & Gas and Iron & Steel businesses will emerge as close to zero net debt businesses, while the other three businesses will have net debt to EBITDA ratios in line with their debt servicing capability, Goyal said.
Vedanta had earlier said that the demerger will help in simplifying Vedanta’s corporate structure with sector focussed independent businesses and provide 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.
It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets, it added.
As part of the demerger, Vedanta plans to separately list four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL) and Vedanta Iron and Steel Limited (VISL).
According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.