Vedanta demerger: 'Phenomenal shareholder value' - Post split, these 5 companies will have free hand to grow, says Anil Agarwal
Vedanta demerger: After the demerger, the company will operate under the name of Vedanta, which will include its base metals business.
- Mar 30, 2026,
- Updated Mar 30, 2026 9:44 AM IST
Vedanta demerger: Metals and mining giant Vedanta is set to be split into five firms early next month. In an interview to the Financial Times, Chairman Anil Agarwal said the long-delayed restructuring could create “phenomenal shareholder value”.
After the demerger, the company will operate under the name of Vedanta, which will include its base metals business.
Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will be the four other entities. Agarwal also said, the combined market cap of the five companies would be much higher than the conglomerate's current $27 billion.
A private parent company led by Agarwal will retain about half of the shares in each of the new entities, he said. The demerger plan was first floated in 2023.
The company's chief Financial Officer Ajay Goel, in an interview to Reuters in January, said Vedanta aims to list the four planned demerged units on Indian bourses by the middle of May.
A tribunal approved the oil-to-metals conglomerate's plan to split into five listed entities in December.
In December 2025, the National Company Law Tribunal (NCLT) Mumbai bench approved demerger of Vedanta into five different listed entities. The stock surged up to 5% on December 17, 2025 post nod to the demerger.
The demerger of Vedanta comes alongside Vedanta’s broader push to boost its balance sheet. The group has been working to pare debt at both the listed entity and parent levels, a key concern for investors over the past few years.
According to reports, Vedanta Resources, the parent company, has already pared its net debt to about $4.8 billion as of December 2025 from around $8.9 billion in March 2022.
As a listed entity, Vedanta continues to tap debt markets. In beginning of March, the company cleared raising up to Rs 2,575 crore through the issuance of non-convertible debentures on a private placement basis, as per a regulatory filing. The fundraising is part of a strategy to diversify funding sources and lower borrowing costs while managing refinancing obligations.
The mining conglomerate reported a robust set of financial results for the third quarter ended December 31, 2025, with net profit of Rs 7,807 crore, clocking a rise of 60% compared to Rs 4,876 crore in the corresponding quarter of the previous fiscal.
Meanwhile, shares of Vedanta were trading 4% higher at Rs 677.60 in early trade on Monday. Market cap of the firm stood at Rs 2.63 lakh crore.
Vedanta demerger: Metals and mining giant Vedanta is set to be split into five firms early next month. In an interview to the Financial Times, Chairman Anil Agarwal said the long-delayed restructuring could create “phenomenal shareholder value”.
After the demerger, the company will operate under the name of Vedanta, which will include its base metals business.
Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will be the four other entities. Agarwal also said, the combined market cap of the five companies would be much higher than the conglomerate's current $27 billion.
A private parent company led by Agarwal will retain about half of the shares in each of the new entities, he said. The demerger plan was first floated in 2023.
The company's chief Financial Officer Ajay Goel, in an interview to Reuters in January, said Vedanta aims to list the four planned demerged units on Indian bourses by the middle of May.
A tribunal approved the oil-to-metals conglomerate's plan to split into five listed entities in December.
In December 2025, the National Company Law Tribunal (NCLT) Mumbai bench approved demerger of Vedanta into five different listed entities. The stock surged up to 5% on December 17, 2025 post nod to the demerger.
The demerger of Vedanta comes alongside Vedanta’s broader push to boost its balance sheet. The group has been working to pare debt at both the listed entity and parent levels, a key concern for investors over the past few years.
According to reports, Vedanta Resources, the parent company, has already pared its net debt to about $4.8 billion as of December 2025 from around $8.9 billion in March 2022.
As a listed entity, Vedanta continues to tap debt markets. In beginning of March, the company cleared raising up to Rs 2,575 crore through the issuance of non-convertible debentures on a private placement basis, as per a regulatory filing. The fundraising is part of a strategy to diversify funding sources and lower borrowing costs while managing refinancing obligations.
The mining conglomerate reported a robust set of financial results for the third quarter ended December 31, 2025, with net profit of Rs 7,807 crore, clocking a rise of 60% compared to Rs 4,876 crore in the corresponding quarter of the previous fiscal.
Meanwhile, shares of Vedanta were trading 4% higher at Rs 677.60 in early trade on Monday. Market cap of the firm stood at Rs 2.63 lakh crore.