Vedanta, the country's leading company involved in the business of metal to oil, has made a mega plan to take the company forward. Anil Aggarwal's Vedanta's mega plan can make the company's shares rocket. Actually, Vedanta owner Anil Aggarwal has announced a big demerger. Vedanta will separate business units under its mega demerger plan to unlock value and obtain funding. Let us tell how many businesses will be separated under Vedanta's mega demerger plan.
These units will demerger
The company is bringing new companies like Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Metals, Vedanta Base Metals and Vedanta Limited. Earlier, Hindustan Zinc said that it is planning to create separate units for its zinc, lead, silver and recycling businesses. Potential value can be unlocked through the demerge and it will hire external advisors to review its corporate structure.
Vedanta Chairman Anil Aggarwal had also recently said that the company would consider listing all or some of its businesses separately. Vedanta Resources, the UK-based company of Vedanta Limited, is preparing for rating downgrade and raising funds to meet its debt.
Hindustan Zinc is a unit of Vedanta.
To reduce debt, Vedanta owner Anil Agarwal asked Hindustan Zinc, a unit of Vedanta Limited, to buy some of the parent company's zinc assets in a $2.98 billion deal. However, the Indian government has about 30% stake in Hindustan Zinc, due to which the government opposed Agarwal's decision. Vedanta Limited is a subsidiary company of Vedanta Resources. At the same time, after the news of de-merger, shares of Vedanta have increased by 6.8% on Friday, the last day of the last trading week. If the company separates its business then the shares of the company can become a rocket.
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