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  5. Vedanta share price rises nearly 2% reports 83% of creditors approve its proposed demerger plan; here are the details

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Vedanta share price rises nearly 2% reports 83% of creditors approve its proposed demerger plan; here are the details

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By Upstox News Desk

3 min read | Updated on February 19, 2025, 10:08 IST

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SUMMARY

The Anil Agarwal-led company aims to restructure itself into five separate entities—Vedanta Ltd, Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Steel and Ferrous Materials and Vedanta Power

Stock list

VEDL
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Shareholders will receive one share of each of the five newly listed companies for every Vedanta share they hold. Image: Shutterstock

Shareholders will receive one share of each of the five newly listed companies for every Vedanta share they hold. Image: Shutterstock

Shares of Vedanta advanced nearly 2% on Wednesday, February 19, as a report says the company received 83% of shareholders’ approval for its demerger on Tuesday.

During the morning trade, the scrip was at ₹426.2 apiece on BSE, rising 1.95%.

The Anil Agarwal-led company aims to restructure itself into five separate entities—Vedanta Ltd, Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Steel and Ferrous Materials and Vedanta Power.

According to an Economic Times report, Vedanta received creditor approval for its proposed demerger, clearing a crucial hurdle for its restructuring plan. The proposal required support from at least 75% of creditors by debt value to move forward. With this approval, Vedanta is set to proceed with splitting its businesses into independent entities, allowing each vertical to operate separately.
"Initially, Vedanta planned to split into six distinct businesses but later revised the structure to create five separate entities: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Ltd. Shareholders will receive one share in each newly formed company for every Vedanta share they hold," The Economic Times said.
Demerger plan

When the demerger was first proposed in September 2023, the company had planned for six entities, including Vedanta Base Metals. However, in December 2024, it decided to keep the base metals segment under the main company.

In June 2024, Vedanta received approval for the demerger from all its major creditors, including the State Bank of India (SBI), which initially was not greenlighting the restructuring.

Also read: Stocks to watch, February 19: Aurobindo Pharma, Zaggle, LIC, Adani Group stocks, Hexaware Technologies, PNB, Mahindra Lifespace, RVNL, and more

Shareholders will receive one share of each of the five newly listed companies for every Vedanta share they hold.

The conglomerate aims to unlock the full potential of its diversified business with this demerger. It believes restructuring will help to optimise operations, attract investments and drive growth.

Vedanta is a diversified natural resource conglomerate involved in exploring, extracting, and processing minerals like aluminium, zinc, lead, silver, copper, and oil & gas. Its operations span India, South Africa, Namibia, Ireland, Liberia, and the UAE.

Vedanta’s December quarter

The conglomerate reported a 76.2% year-on-year (YoY) surge in its consolidated profit after tax (PAT) in the third quarter of the financial year 2024-25. Vedanta reported a net profit of ₹3,547 crore in Q3 FY25 as against ₹2,013 crore in the corresponding period last fiscal year.

The profit grew on the back of higher income, which surged 9.5% YoY to ₹39,795 crore, compared to ₹36,320 crore it reported in the third quarter of the 2023-24 fiscal (Q3 FY24). Read more

Additionally, Vedanta reported a 10.18% increase in its revenue from operations, which stood at ₹38,526 crore in the three months ended December 31, 2024, over ₹34,968 crore in the year-ago period.

Also read: Vedanta shares slip 2% ahead of demerger meeting with shareholder, creditor
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