Vedanta fixes May 1 as record date for demerger into multiple businesses

Anil Agarwal-led Vedanta Ltd on Monday fixed May 1 as the record date for the demerger of its businesses into five separate companies.

Under the restructuring plan, the company will split its operations into newly created entities, including Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel, among others. The company has not yet disclosed the complete list of all five entities.

As per the approved scheme, shareholders holding Vedanta shares as of the record date will be entitled to receive one share of each of the newly formed companies for every one share held in Vedanta (1:1 ratio).

The company also announced that Talwandi Sabo Power and Malco Energy will be renamed Vedanta Power and Vedanta Oil and Gas, respectively.

Additionally, Vedanta has approved the transfer of its shareholding in Bharat Aluminium Company (Balco) to Vedanta Aluminium. Non-convertible debentures linked to the aluminium undertaking will also be transferred to Vedanta Aluminium Metal on the record date, the company said.

The announcement came after market hours on Monday. Earlier in the session, Vedanta shares ended 2.15 per cent lower at Rs 770.65. At this level, the stock has gained 62.60 per cent over the past six months.