Shares of mining major Vedanta have surged more than four percent over the past two sessions following the approval of its demerger plans by a majority of its lenders.
A senior Vedanta official, speaking in a bondholder conference call, stated, “I am happy to inform you all that we have secured over 52 percent, along with the additional percentage needed to reach 75 percent. Most of the lenders have given their approval.”
Vedanta shares on NSE were trading at Rs 453.70 apiece, up by nearly one percent at 11.50 am.
“Some lenders are awaiting their committee meetings, while others are waiting for their board meetings. As of now, we have already received 52 percent approval. The remaining requirement will be fulfilled within a week or 10 days. Following that, we will proceed to file the application with the NCLT,” the official added.
State Bank of India, a significant creditor, had previously granted its consent, as per a banker familiar with the matter.
This approval marks a crucial milestone for the company, representing the final major compliance step required. It has been closely monitored by the market and sets the stage for the $20-billion demerger.
In September 2023, Vedanta announced plans for the demerger of its metals, power, aluminium, and oil and gas businesses to unlock potential value. The demerger will result in the creation of six independent verticals: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Limited.
Shareholders will receive one share of each of the five newly listed companies for every share of Vedanta. Post-demerger, the businesses of Hindustan Zinc and the electronics business will remain with Vedanta Limited.
