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Vedanta intends to complete the demerger of five of its core businesses, including aluminium, oil and gas, and steel, into separate listed corporations by December 2024, according to Chairman Anil Aggarwal.
Aggarwal also reaffirmed the company's goal of deleveraging Vedanta Resources by $3 billion over the next three years, reaching an annual Group EBITDA of $7.5 billion within two years.
"FY25 will be a transformative year for us on many fronts as we prioritize disciplined growth, operational excellence, and exploring opportunities along the value chain," Aggarwal wrote in the note. Adding, "The demerger will promote each company to leverage its own independent strengths and attract targeted investments, ultimately driving sustainable growth and long-term stakeholder value creation".
The company's optimism towards the demerger timeline comes days after Fitch Group subsidiary CreditSights raised concerns regarding the proposed demerger. "For the Jan-2024 and Mar-2025 bondholders whose bonds are secured by shares of VEDL, it is unclear what happens to that collateral after the demerger," CreditSights wrote in a Vedanta FAQ posted on its website.
Vedanta has a portfolio of assets among Indian and global companies with metals and minerals—zinc, silver, lead, aluminium, chromium, copper, nickel—oil and gas, a traditional ferrous vertical including iron ore and steel, and power, including coal and renewable energy. It is now foraying into semiconductor and display glass manufacturing.
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