Vedanta Ltd constitute board committee to evaluate value unlocking measures

The Board of Directors of Vedanta Ltd has decided that, considering the scale, nature, and potential opportunities for various business verticals of the Company, the Company should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives (including demerger(s), spin-off(s), strategic partnerships etc.) for unlocking value and simplification of corporate structure.

Subject to a detailed evaluation, it is the intention that the Aluminium, Iron & Steel, and Oil & Gas businesses would be housed in standalone listed entities.

To this end, the Board of Directors has constituted a committee of directors to evaluate and recommend such options and alternatives to the Board of Directors.

The strategic objectives outlined by the Board of Directors for undertaking such an exercise are as follows:

• Simplification and streamlining of corporate structure,
• Unlocking value for all stakeholders,
• Creation of businesses which are positioned better to capitalize on their distinct market positions and deliver long-term growth and enable strategic partnerships,
• Tailored capital structure and capital allocation policies based on business specific dynamics,
• Distinct investment profiles to attract deeper and broader investor bases; and
• Accelerate emissions reduction and strong ESG practices.

The Board has also appointed various advisors to assist the Board in evaluating the options.

It is anticipated that the Board and advisors will complete their evaluation and consider the way forward as soon as practically possible. Appropriate announcements and public disclosures in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations and other applicable laws will be made as and when required.

Chairman Anil Agarwal said "Over the past few years, Group has materially improved the operational performance of the businesses, increased cash flows, reduced debt whilst concomitantly focusing on accelerating investments in energy transition, health and safety, diversity and ESG in general. This step, which we announced today, whilst pending a detailed evaluation, is designed to create independent, industry-leading, global public companies, where each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees. We will continue to leverage our significant strengths in technology, operations and people to better serve our customers and all stakeholders."

Shares of Vedanta Limited was last trading in BSE at Rs. 338.40 as compared to the previous close of Rs. 332.40. The total number of shares traded during the day was 424912 in over 5354 trades.

The stock hit an intraday high of Rs. 340.80 and intraday low of 329.05. The net turnover during the day was Rs. 142464832.00.

Source : Equity Bulls

Keywords

VedantaLimited INE205A01025 VEDL ValueUnlocking Demerger SpinOff CorporateStructure