Will demerger into 6 separate listed entities help Vedanta garner investor interest?
Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd. says the verticals which are getting demerged now would provide opportunity to the lenders to take control of such verticals immediately, as a result of which, further unlocking of values can happen including sale of some of the verticals, which would probably satisfy the creditors or the lenders who have given money to them
What is your first take on Vedanta because the stock has been reeling under pressure very near to its 52-week low on the concerns of the debt level? Do you believe the restructuring and demerger into six different separate listed entities will help Vedanta garner investor interest of investors, how are you looking at it?
Let us look at it from different perspectives; the first perspective is from the creditors who have lent to this group. At the current level, they probably want to see the securitization of assets, currently in the existing structure because all the assets are merged into one and because the resultant structure which is a pyramid structure, is getting created. It becomes impossible for the creditors to take a view on the subject and as a result, more comfortable when the individual vertical is demerged.
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The verticals which are getting demerged now would provide opportunity to the lenders to take control of such verticals immediately, as a result of which, further unlocking of values can happen including sale of some of the verticals, which would probably satisfy the creditors or the
