Vedanta Limited shares saw an upward movement on Tuesday, March 18, 2025, rising to 1.2% as Chairman Anil Agarwal reaffirmed the potential of its newly demerged companies. The restructuring is expected to unlock value and simplify operations, leading to the creation of independent, resource-focused businesses.
Vedanta share price movement
Vedanta shares rose to ₹452.45 apiece on the National Stock Exchange (NSE). The rise followed Anil Agarwal's statement on Monday, March 17, 2025, where he highlighted the future potential of the company's demerger plan. The company's market capitalisation increased following the announcement.
Vedanta demerger details
Vedanta plans to create four independent, resource-focused entities. These companies will operate with distinct management structures, financial strategies, and business priorities. The demerged entities will include Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel.
Vedanta Aluminium will continue as one of the world's largest aluminium producers. Vedanta Oil & Gas will be India's largest private-sector crude oil producer. Vedanta Power will focus on energy generation, while Vedanta Iron & Steel will manage the company's ferrous portfolio. With such a diverse and strategically positioned business model, investors looking to buy shares online can explore opportunities in Vedanta’s expansive portfolio, which spans critical industries driving economic growth.
Shareholder benefits and demerger structure
Every Vedanta shareholder will receive one additional share in each of the four newly formed companies. This allocation ensures direct ownership in the newly structured businesses. The aim is to provide greater transparency and attract investors looking for sector-specific opportunities.
Anil Agarwal's statement on Vedanta's growth
Anil Agarwal expressed confidence in the demerger plan, stating that each new entity has the potential to grow into a $100 billion business. The move is designed to create specialised entities, improving operational efficiency and market positioning.
He emphasised that Vedanta's unique assets and strong financial discipline will contribute to sustainable growth. The demerger is expected to enhance value creation for stakeholders and improve corporate governance.
Background of Vedanta's restructuring plan
Vedanta initially attempted to go private in 2020 but was unsuccessful. Following this, the company introduced the demerger plan in 2023 as a strategy to streamline its business operations. The restructuring is intended to help manage Vedanta's debt burden while improving capital allocation.
The listed Vedanta Limited will continue holding a majority stake in Hindustan Zinc Limited. Hindustan Zinc is the second-largest integrated zinc producer globally and the third-largest silver producer. Additionally, the company will oversee growing technology businesses within the group.
Trading level of Vedanta shares
Vedanta's share price movement reflects positive sentiment around the company's restructuring plan. The demerger aims to simplify operations and provide direct benefits to shareholders. Investors tracking the development are considering the long-term impact of the restructuring on Vedanta's market position.
At 11:15 AM on Tuesday, March 18, 2025, Vedanta shares were trading higher at ₹455.82 per share on the NSE.
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