Vedanta Ltd.(BSE) Plan to Split into Six Companies"- SRJ...

Vedanta, a big mining company, got the green light from 75% of its creditors to split into six separate companies. This is a big step in their plan.

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What will be the next step?

Stock Exchange Approval: Vedanta will ask for permission from the stock exchanges.
Legal Filing: They will submit their plan to the National Company Law Tribunal (NCLT).
Shareholder Approval: They also need approval from their shareholders.

Also Read: Vedanta shares: Risk-reward attractive, stock price target Rs 520, says CLSA

What Will Change?

Vedanta will create new companies for different parts of its business:

Aluminium
Oil & Gas
Power
Steel and Ferrous Materials
Base Metals

The zinc business and new projects will stay with Vedanta Limited. After the split, shareholders will get shares in the five new companies.

Also Read: Vedanta: Approved selling 2.60% of their share in Hindustan Zinc through an offer-for-sale

Financial and market impact

Vedanta borrows money from both public and private banks like the State Bank of India, ICICI Bank, and Axis Bank. Getting approval from most creditors is a good sign as Vedanta works on reducing its debt. Recently, they raised ₹8,500 crore to help pay off some debts.

By March 31, Vedanta’s net debt had decreased by ₹6,155 crore from December 2023, making the total ₹56,388 crore. This was due to strong cash flows and better management of working capital.

Vedanta also got clearances from major stock exchanges BSE and NSE for their demerger plan. This is important because it allows them to move forward with their plan to split into six independent companies. They will soon file an application with the NCLT and seek further approvals from shareholders and other regulatory bodies.

The goal of the demerger is to create companies that focus on specific sectors like critical minerals, energy security, renewables, and technology. This will simplify Vedanta’s structure and offer global investors direct investment opportunities in these focused businesses.

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People May Ask

Is Vedanta share good to buy?

It depends on what you are looking for. Vedanta is a big company in metals, mining, and oil. It is best to do some research or talk to a financial advisor to see if it is right for you.

What is Vedanta’s price target in 2025?

Experts think Vedanta’s share price in 2025 could be between ₹306 and ₹430. However, remember, these are just guesses.

What is the future price of Vedanta stock?

It is hard to say exactly what the future price will be because the market can change a lot. The 2025 price target gives a rough idea.

What is the 10-year return of Vedanta?

To find out how much Vedanta’s stock has grown in the last 10 years, you can check financial websites or look at historical stock data.

Vedanta Ltd. (BSE) Plan to Split into Six Companies