Vedanta Ltd's shares are in the spotlight today after the Anil Agarwal-led company announced that its demerger proposal has received approval from 75% of its secured creditors for stock exchange clearance and that it is now filing its demerger scheme with the National Company Law Tribunal (NCLT). The metals and mining corporation has officially filed its demerger proposal with the National Company Law Tribunal (NCLT). The planned demerger intends to simplify Vedanta's corporate structure by forming standalone firms, giving global investors direct investment options in pure-play enterprises.
The only manufacturer of silver and zinc in India, Vedanta, intends to split up its operations into six different companies: Vedanta Base Metals, Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Ltd. Shareholders will get one share of each of the five newly listed companies for every share of Vedanta Limited they now own as part of a straightforward vertical split demerger.
Vedanta has a proven track record of providing its investors with large profits. The company's five-year average cumulative dividend yield was 65 percent as of June 30, 2024, and its total shareholder return during the same period was 276 percent.
In addition to being one of the country's biggest providers of electricity and buyers of renewable energy, Vedanta is also the country's leading producer of oil and aluminum in the private sector.
