The demerger of Vedanta Limited into four separate entities will broaden the conglomerate’s investor base, and allow new investors to choose among the new entities and the sectors they represent, chairman Anil Agarwal said in a note to shareholders.
The four demerged entities include Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Steel and Ferrous Metals. Meetings with shareholder and creditors for approval of the demerger will be held on February 18, the metals major had informed the exchanges in a filing last week.
“This will substantially broaden the Vedanta investor base while allowing all new investors the opportunity to choose between these entities and the pureplay industry verticals they represent,” he wrote.
Post demerger, every Vedanta shareholder will receive one additional share in each of the four newly demerged companies, Agarwal said in the letter titled “Momentum rising.”.
“Anyone who had invested in Vedanta at the start of the past five-year period would have seen their investments multiplying over 4.7 times during this time, both in terms of capital appreciation and cash dividends returned, where Vedanta has the strongest track record – a dividend yield of 81% — highest amongst all its peers,” he added.
Vedanta reported a 70% year-on-year rise in net profit at Rs 4,876 crore for the quarter ended December 31, and its highest Ebitda in 11 quarters at Rs 11,284 crore. Its revenue rose 10% on-year at Rs 39,115 crore.
“This stellar performance would not have been possible without the hard work, commitment, and dedication of our 1 lakh+ strong Vedanta family of employees and business partners, the entrepreneurial zeal of our management team, and the support of all our stakeholders,” Agarwal said.
Vedanta’s Aluminium production increased to 614 kt (kilotonne) in the December quarter and 1,819 kt over nine months, up 3% year-on-year. Alumina production jumped 16% to 1,543 kt over nine months, while Zinc India achieved its highest-ever refined metal output during this period, Agarwal said.
Looking ahead in 2025, Agarwal said that India’s time has come as the focus on the mining sector is increasing in India and overseas.
“The mining and natural resources sector has played an extremely valuable role in the growth and development agendas of all the world’s major economies: North America, Europe, the Middle East, China, and Australia are all testimony to this. With less than 20% of our mineral resources explored to date, and with increasing focus on the sector both at home and overseas, India’s time is now!” he added.
On the ESG front, Agarwal wrote that the company opened its 7,000th Nand Ghar inching closer to its goal of reaching 25,000 Nand Ghars in support of the children and women of India.