Vedanta Shares Fall Ahead of Creditors' Vote on Demerger Plan

Vedanta Ltd. is facing a pivotal moment as its creditors meet to vote on a proposed demerger plan that would split the mining conglomerate into five distinct businesses, including Vedanta Aluminium and Vedanta Oil & Gas. The plan has already garnered approval from 75% of secured creditors and requires a three-fourths majority from both secured and unsecured lenders to proceed. The demerger aims to streamline operations and enhance shareholder value by allowing each new entity to focus on its specific growth opportunities. In early trading, Vedanta shares dropped over 1% as investors expressed caution ahead of the vote, reflecting market uncertainty about the plan's acceptance. If approved, this restructuring could significantly improve Vedanta's financial health and attract targeted investments, particularly in its newer ventures. The company has made considerable strides in reducing debt and aims for further financial restructuring post-demerger.