Vedanta Gets Bourses' Nod For Demerger

Vedanta Ltd. on Wednesday received approval from BSE Ltd. and the National Stock Exchange of India Ltd. to split into six independent listed companies.

"The BSE and NSE have conveyed that they have ‘No Objections/No Adverse Observations’ on the proposed scheme," the company said in an exchange filing.

On Tuesday, the mining giant received the nod from three-fourths of its secured creditors on the demerger plan.

The company plans to spin off its aluminium, oil and gas, power, steel and metal businesses into separate listed entities. Vedanta will continue to operate Hindustan Zinc Ltd. and its display and semiconductor manufacturing units.

The demerger will help simplify Vedanta’s corporate structure by creating independent businesses. It will also offer global investors direct investment opportunities in pure-play companies linked to India's impressive growth, the company said.

The business will be split into Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.

The demerger is planned to be a simple vertical split; for every share of Vedanta Ltd., the shareholders will additionally receive one share of each of the five newly listed companies.

"The demerger of our businesses will lead to the creation of six strong companies, each a Vedanta in its own right. This will unlock massive value," Vedanta Chairman Anil Agarwal said in a statement. "Each demerged entity will chart their own course, but will follow Vedanta’s core values, its enterprising spirit and global leadership."

Shares of Vedanta closed 0.91% higher at Rs 451 apiece, as compared with a 0.35% advance in the benchmark S&P BSE Sensex.