Vedanta Splits into Five Companies

Vedanta Limited, an Indian oil-to-metals conglomerate, is set to split into five separate listed companies early next month. This years-long restructuring program, spearheaded by Chairman Anil Agarwal, aims to reduce the company's debt. A tribunal approved the demerger plan in December. The new entities will include Vedanta Limited (housing base metals), Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy. Agarwal believes the combined market capitalization of these five companies will exceed Vedanta Limited's current $27 billion. A private parent company controlled by Anil Agarwal will retain approximately half of the shares in each new entity. The government of India initially opposed the plan, fearing it would hinder its ability to recover owed money. Chief Financial Officer Ajay Goel stated that the four demerged units are expected to be listed on Indian exchanges by mid-May.