Vedanta reports progress in its demerger, having received significant approval from NCLT

Vedanta Limited’s demerger process has progressed further, with the company submitting its plan to the National Company Law Tribunal (NCLT) after receiving approval from 75 per cent of its secured creditors, said Chairman Anil Agarwal.

He also said the company expects to accomplish the demerge process by the end of FY204-25. The demerger will separate Vedanta’s six business units into individual entities, each focused on specific areas like aluminium, oil and gas, power, steel, and base metals. Only the existing zinc business and newly started ventures will remain under the wings of Vedanta Limited.

On accomplishing the demerger, Vedanta’s shareholders will get one new share in each of the five companies, strengthening the company’s business model and economy. Also, this demerger will lead to a shift from managing assets to owning them, enabling Vedanta to become a global leader in each sector.

Vedanta has already been growing its businesses from FY2024 onwards, investing $1.9 billion in growth capital across its different businesses. In FY2024 ended June 30, Vedanta generated a net profit of INR 3,606 crore, compared to INR 2,640 crore during the corresponding period of the last year. The company’s income rose to INR 36,698 crore in FY2024 from INR 34,279 crore in FY2023.