Vedanta Ltd, a major mining conglomerate listed in Mumbai, has said it will retain its Base Metals undertaking within the main company as part of a demerger proposal that was revised. The decision followed discussions with stakeholders, including lenders, and was approved by the board of directors during a Friday meeting.
Initially, the company thought of carving off its operations into six business entities under Vedanta, Vedanta Aluminium, Oil & Gas, Power, Steel and Ferrous Materials, Base Metals, and Vedanta Ltd. Lenders believe Base Metals to stay with the parent entity would have optimal benefits in terms of debt absorption and value creation.
The company is also exploring opportunities to revive its copper business in Thoothukudi, Tamil Nadu, which is a core part of the Base Metals business. Although the terms of the demerger scheme, including share entitlement, remain unchanged, Vedanta will consider a future demerger for Base Metals when the business matures and the value for shareholders is maximized.
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