Vedanta Announces Demerger of Surplus Real Estate Assets to Unlock Value

Vedanta Limited, India's largest diversified natural resources company with a significant global footprint and an operating history spanning more than three decades, has announced to demerge its surplus real estate assets accumulated at prominent locations across India into Vedanta Property Platforms Limited (VPPL). The proposed demerger will enable to unlock value out of these surplus assets.

The announcement comes within three months of the successful implementation of one of the largest restructurings in India, culminating in the market debut of four new independent entities on the NSE and BSE.

The demerger is planned to be a vertical split, wherein for every 20 shares of Vedanta Limited, the shareholders of Vedanta will receive 1 share of VPPL.

The surplus real estate portfolio to be demerged comprises of ~ 2,200 acres of industrial land and ~ 55,000 sq feet for residential/ commercial properties.

Mr. Anil Agarwal, Chairman of Vedanta Group, stated: "This is yet another exciting announcement from Vedanta. After the recent success of the five-way demerger creating "pure-play" entities across oil and gas, aluminium, power, and steel, we plan to demerge the surplus real estate assets into an independent "pure-play" company to unlock significant value for the stakeholders."

Shares of Vedanta Limited was last trading in BSE at Rs. 267.60 as compared to the previous close of Rs. 264.50. The total number of shares traded during the day was 744481 in over 9907 trades.

The stock hit an intraday high of Rs. 269.55 and intraday low of 263.40. The net turnover during the day was Rs. 197995911.00.

Source : Equity Bulls

Keywords

Vedanta INE205A01025 Demerger RealEstateAssets