Vedanta group to split into five listed companies early next month: Report

Mining and metals major Vedanta Limited is set to divide its business into five separately listed companies early next month, reported Financial Times on Saturday, citing an interview with the group’s chairman Anil Agarwal.

According to the media report, the restructuring proposal received approval from a tribunal in December, clearing the way for the group to move ahead with the demerger.

Once the process is complete, the existing entity will continue as Vedanta Limited, focusing on its base metals operations. Four additional companies will be carved out — Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy — each operating independently.

The total market value of the five companies together is expected to exceed the group’s current valuation of about $27 billion, Agarwal told FT. He also noted that a privately held parent firm under his control will keep roughly 50% ownership in each of the newly formed entities.

The demerger plan faced resistance earlier

The demerger plan, first announced in 2023, had earlier faced resistance from the government over concerns that splitting the business could complicate the recovery of outstanding dues, particularly from Vedanta’s oil and gas operations, where the government is a key stakeholder and has pending claims related to profit sharing and cost recovery.

According to a report by Reuters, separately, the chief financial officer Ajay Goel had said in January that the four new units are likely to be listed on Indian stock exchanges by mid-May.

Debt reduction and value unlocking

The move comes at a time when the group has been working to manage a heavy debt load at both the operating company and its parent, Vedanta Resources. Over the past few years, the company has raised funds through bond issuances and stake sales, while also exploring asset monetisation to improve its balance sheet.

Vedanta has a presence across sectors including zinc, aluminium, oil and gas, and power, making it one of India’s most diversified natural resources groups. However, this complexity has often been seen as a factor weighing on its valuation.

If executed smoothly, the demerger is expected to mark a significant shift in the group’s structure, potentially improving transparency and giving shareholders direct exposure to individual business verticals