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Vedanta To Split Into Four Entities, Official Announcement Soon; Know Why

Vedanta will establish distinct companies for its metals, power, aluminium, and oil and gas divisions.

Vedanta Ltd is on the brink of a significant transformation, with plans to divide itself into four separate entities, as reported by several reports.

An official announcement regarding this restructuring is expected to be made later this week. According to insider information, Vedanta will establish distinct companies for its metals, power, aluminium, and oil and gas divisions.

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The primary motivation behind this decision to spin off these divisions is to unlock greater value for each unit. Vedanta Ltd is strategically repositioning itself, aiming for a more focused approach in its core sectors.

This strategic move holds the potential to enhance operational efficiency and bolster the financial performance of each of these business segments.

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Just a month ago, Chairman Anil Agarwal had hinted at the possibility of demerging the company’s various businesses. This aligns with his vision of potentially pursuing separate listings for some, if not all, of Vedanta’s business units.

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Agarwal’s overarching goal is to offer investors the opportunity to hold shares in distinct and diversified entities. According to him, this approach is expected to create new avenues for investment across various sectors, providing shareholders with a more diversified portfolio.

Following a recent downgrade of its parent firm Vedanta Resources Limited by Moody’s, Vedanta Ltd’s shares had experienced a sharp decline.

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HISTORY

Written By

Malika Sahni


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