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Vedanta's first steps towards demerger

Vedanta takes action towards demerger, incorporates base metals unit in a positive approach

Vedanta's first steps towards demerger

Anil Agarwal-led Vedanta has announced that it has moved towards corporatization of its base metals unit Vedanta Base Metals Ltd with an authorized capital of Rs 1 lakh.

This department was established to implement the division plan announced on September 29. This unit is currently 100% owned by Vedanta Limited.

Also it will have a diversified portfolio of international base metal assets including Vedanta Base Metals, Tuticorin, Fujairah Gold, Silvassa, and VZL, which also contributed 5% to the company's consolidated operating profit in fiscal 2023.

In his statement on October 29, Vedanta Chairman Anil Agarwal said, "We believe that by separating our business units, we will overcome obstacles and develop by gaining value for rapid vertical growth."

The division of Vedanta was planned as a vertical division. Vedanta Ltd shareholders will receive one share in each of the five newly listed entities for every share they currently hold in the listed entity.

The six independent entities listed are Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.

Vedanta shares were at the highest level of the day and traded at Rs 228.80 yesterday, up 3%. The stock has recovered 10% from its 52-week low of Rs 208.


According to the statement made by the Mumbai-based multinational company in mid-June, Vedanta's main activities have expanded to include Goa in the list and include iron ore, gold and aluminum mines in Karnataka, Rajasthan and Odisha.

Vedanta Ltd has been declared the preferred bidder for an iron ore mine in Goa. The government of Goa has been invited to participate in electronic auction (tenders) for grant of mining leases in respect of iron ore mines in the state. The company submitted an offer for a mining lease.

Vedanta is already a company that has achieved success in its lease bid for the first iron ore that will be auctioned in December 2022. Goa Prime Minister Pramod Sawant announced in the Monsoon Session of the Legislative Assembly that iron ore mining activities, which have been stopped in the state since 2018, will start in November 2023.

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