Vedanta is preparing for a major overhaul as it plans to split its business into five separate companies next month, in what could become one of India’s biggest corporate restructurings in recent years.
The move is part of the company’s broader effort to simplify its structure, reduce debt, and make each business more focused and easier to manage. The plan has already received key approvals and is expected to be rolled out in April, with the new companies likely to be listed soon after.
Once completed, Vedanta’s operations will be divided into five distinct entities, each handling a specific sector such as aluminium, power, steel, and iron. This will allow investors to clearly understand and invest in individual parts of the business rather than the group as a whole.
Chairman Anil Agarwal believes the split will help unlock greater value for shareholders. He has suggested that the combined worth of the five companies could be higher than Vedanta’s current overall valuation.
The restructuring also comes as the company looks to manage its debt more effectively. By breaking into smaller, specialised units, Vedanta hopes to improve efficiency, attract targeted investments, and give each business more room to grow independently.
Despite moving forward, the plan had earlier raised concerns, particularly from the government, over how pending dues would be handled after the split. However, with approvals now in place from regulators, creditors, and shareholders, the process is set to go ahead.
Vedanta’s parent group is expected to retain significant stakes in each of the new companies, ensuring it continues to have control while allowing the businesses to operate more independently.
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