Investors cheered as Vedanta Ltd unveiled a bold restructuring plan, propelling the company's shares to a 5% surge. On BSE, the stock gained 4.98%, reaching Rs 233.60, and on NSE, it rose by 5%, reaching Rs 233.75.
The conglomerate, led by mining magnate Anil Agarwal, made waves with a strategic move, approving the separation of its metals, power, aluminum, and oil and gas businesses into distinct listed entities.
Additionally, Vedanta plans to revamp its lucrative zinc unit to reduce debt and enhance value. Under this restructuring, shareholders will receive one share in each of the five demerged businesses for every share they hold in the company. The completion of this process, contingent on various approvals, is anticipated within 12 to 15 months, as stated by Ajay Agarwal, Vedanta's President of Finance.
Vedanta's board greenlit this strategic shift, emphasizing its goal to create independent 'pure play' companies that can attract substantial investments for growth. This move underscores Vedanta's commitment to enhancing shareholder value and optimizing its diverse business portfolio.
Investors are happy about this news and feel sure that restructuring Vedanta will bring good things and create more value.