Likely to house aluminium, iron & steel and oil & gas in standalone entities
The Board of Directors of Vedanta at its meeting held on 17 November 2021 has decided that, considering the scale, nature, and potential opportunities for various business verticals of the Company, the Company should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives (including demerger(s), spin-off(s), strategic partnerships etc.) for unlocking value and simplification of corporate structure.Subject to a detailed evaluation, it is the intention that the Aluminium, Iron & Steel, and Oil & Gas businesses would be housed in standalone listed entities.
The strategic objectives outlined by the Board of Directors for undertaking such an exercise are as follows:
Simplification and streamlining of corporate structure,
Unlocking value for all stakeholders,
Creation of businesses which are positioned better to capitalize on their distinct market positions and
deliver long-term growth and enable strategic partnerships,
Tailored capital structure and capital allocation policies based on business specific dynamics,
Distinct investment profiles to attract deeper and broader investor bases; and
Accelerate emissions reduction and strong ESG practices.
The Board has also appointed various advisors to assist the Board in evaluating the options.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
