New Delhi: Mining conglomerate Vedanta Ltd on Tuesday said it has received approval from 75 percent of secured creditors for the proposed demerger of its businesses.
The announcement marks an important step in Vedanta's plan to split into six independent listed companies, including oil and gas and aluminium.
In a statement, the company said it has received a go ahead from 75 percent of its secured creditors for obtaining clearance from stock exchanges and subsequently filing its demerger scheme with the National Company Law Tribunal (NCLT) for its proposed demerger.
The demerger will create independent companies housing the aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. The existing zinc and new incubated businesses will remain under Vedanta Ltd.
"Vedanta's demerger will create sector-focused entities, aligned with India's global leadership goals in critical minerals, energy security as well as renewables and technology sectors," it said.
The demerger will help in simplifying the company's corporate structure by creating independent businesses.
Moreover, it will also offer global investors direct investment opportunities in pure-play companies linked to the country's impressive growth.
The company's "existing businesses will be structured in the six independent companies after the demerger: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd," it said.
Anil Agarwal-led Vedanta Ltd reported a 27.2 percent decline in consolidated net profit to Rs 1,369 crore for the March quarter on account of a one-time impairment of Tuticorin asset.
The company had posted a consolidated net profit of Rs 1,881 crore in the year-ago period, Vedanta had said in a regulatory filing.
The consolidated income of the company in the January-March period dropped to Rs 36,093 crore, as against Rs 38,635 crore in the year-ago period.
As on March 31, 2024, Vedanta's gross debt was at Rs 71,759 crore.
Vedanta Ltd, a subsidiary of Vedanta Resources, is a diversified global natural resources company with operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium and power across India, South Africa and Namibia.
The company has invested over 35 billion dollars in India and is making rapid expansion efforts through 50 strategic growth projects.
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