Vedanta shares in focus on getting 83% creditor approval for demerger plan
Vedanta shares will be in focus on Wednesday after the company received 83% creditor approval for its proposed demerger, clearing a crucial hurdle for its restructuring plan.
The proposal required support from at least 75% of creditors by debt value to move forward. With this approval, Vedanta is set to proceed with splitting its businesses into independent entities, allowing each vertical to operate separately.
Initially, Vedanta planned to split into six distinct businesses but later revised the structure to create five separate entities: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Ltd.
Shareholders will receive one share in each newly formed company for every Vedanta share they hold.
The company had already secured No Objection Certificates (NOCs) from BSE and NSE. The restructuring, approved by the board in September 2023, aims to streamline operations and enhance shareholder value by allowing each business to focus on its core sector without being tied to the larger conglomerate.
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