Vedanta demerger goes ahead as NCLT paves way for meetings of shareholders, creditors
Mining major Vedanta Ltd on Friday said the Mumbai bench of the NCLT has asked the company to call a meeting of secured and unsecured creditors and shareholders within the next 90 days to discuss the proposed sale.
The proposed merger would create private companies that house aluminum, oil and gas, energy, iron and steel, and basic metals businesses. The existing zinc and newly incorporated businesses will remain under Vedanta Ltd.
“A meeting of equity shareholders… Called and held within 90 days from the date of receipt of the order,” said a two-member bench of the National Company Law Tribunal (NCLT) comprising Technical Member Madhu Sinha and Justice Member. Reeta Kohli in its sequence dated 21 November.
Vedanta Chairman Anil Agarwal had earlier said that the proposed demerger of the various verticals representing more than 15 assets would see it evolve from asset managers to asset owners.
As the company goes through a transformation phase, Vedanta is focused on consolidating and strengthening its asset base to emerge as a global leader in each vertical, the chairman said.
The diversified natural resource company has cleared the NCLT for demerger after getting nod from lenders and expressed hopes of finalizing the process by the end of this financial year.
Vedanta had received approval from 75 percent of its secured creditors for the proposed demerger of its businesses.
The demerger will help simplify the company’s structure by creating independent businesses. In addition, it will provide global investors with direct investment opportunities in companies that play a key role in the country’s phenomenal growth.
The separation will allow individual units to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets.
From FY24 onwards, the company is investing USD 1.9 billion as a measure of economic growth across its businesses.
The company reported a consolidated profit of Rs 4,352 crore for the September quarter. It had posted a consolidated loss of Rs 1,783 crore in the previous period.
