Daijiworld Media Network – New Delhi

New Delhi, Mar 29: Mining conglomerate Vedanta Limited is set to break into five separate listed entities early next month as part of a long-term restructuring aimed at reducing debt and unlocking value.

The move follows approval from a tribunal in December, paving the way for one of the biggest corporate reorganisations in India’s metals and energy sector.

Post demerger, Vedanta Limited will continue as the base metals business, while four new independent companies will be created—Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy.

Chairman Anil Agarwal said the combined market capitalisation of the five entities is expected to exceed the group’s current valuation of around $27 billion, indicating potential value creation through focused operations.

As per the plan, a private parent entity controlled by Agarwal will retain roughly half of the shareholding in each of the newly formed companies.

The restructuring proposal, first announced in 2023, had earlier faced resistance from the government over concerns that a breakup could complicate recovery of outstanding dues.

Meanwhile, Chief Financial Officer Ajay Goel had earlier indicated that the four demerged units are expected to be listed on Indian stock exchanges by mid-May.

The demerger is seen as a strategic step to streamline operations, attract investors, and strengthen the group’s financial position amid ongoing efforts to manage debt.