Vedanta Retains Base Metals in Revised Plan

Vedanta Ltd has revised its demerger proposal, deciding to retain its Base Metals division within the parent company instead of splitting it into a separate entity. This decision follows consultations with stakeholders, including lenders, who believe that retaining the Base Metals undertaking will optimize debt allocation and enhance overall value creation. While the initial plan included demerging into six independent companies, the focus will now be on the existing businesses of Vedanta Aluminium, Oil & Gas, Power, and Steel. The company is also exploring options to restart its copper business in Thoothukudi, Tamil Nadu, which is a significant part of the Base Metals division. Shareholders will continue to benefit from their interests in both Vedanta and the resulting companies, as the share entitlement ratio remains unchanged. A future demerger of the Base Metals unit may be considered as the business matures to realize its full potential value.