After the demerger, the company will operate as Vedanta, which will include its base metals business. Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will be the four other entities.
Agarwal told the FT that the new entities emerging from the conglomerate will have a free hand to grow. A privately held parent company controlled by Agarwal will retain roughly half the shareholding in each of the demerged entities, he added.
Vedanta’s market value to surge?
The industrialist further said in his interview with the FT that the restructuring could sharply re-rate the group’s market value. “The combined market capitalisation of the five companies would be much higher. People are saying that, comfortably, it should double,” he said. Vedanta’s total market cap currently stands at around Rs 2.54 lakh crore.
Vedanta’s total debt stands at around $11 billion, according to S&P Capital IQ, while the newly carved-out firms are expected to collectively carry about $7 billion in debt. The restructuring plan, first proposed in 2023, is also aimed at simplifying the group’s complex corporate structure and improving access to capital for each business independently.
Vedanta’s long-awaited demerger plan received approval from the National Company Law Tribunal (NCLT) in December last year. When Vedanta first announced its demerger plan in 2023, it had proposed splitting its Indian operations into six separately listed companies, including a standalone base metals entity. Over time, the structure was revised. Under the approved scheme, the base metals business will remain within a restructured Vedanta Ltd, while four new listed companies will be carved out.
The restructured Vedanta will continue to house the zinc and silver businesses through Hindustan Zinc and is envisaged as an incubator for future ventures.The demerger has seen significant delays, largely due to objections raised by the government.
During his interview with the FT, Agarwal also flagged India’s dependence on imported energy as a strategic risk. This comes as oil and gas prices rally due to the prolonged closure of the Strait of Hormuz amid the ongoing conflict involving Iran, the US and Israel.
He said India should ramp up domestic oil and gas production, warning that heavy reliance on imports — over 80% of crude requirements — leaves the country exposed to global disruptions.
Meanwhile, Vedanta recently turned ex-date for the Rs 11 interim dividend announced for the ongoing financial year 2025–26. The company had announced a third interim dividend of Rs 11 per equity share, with the cumulative payout amounting to Rs 4,300 crore. The Anil Agarwal-led company had set Saturday, March 28, as the record date to determine shareholder eligibility for the dividend.
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