The shares of a Mining company specializing in the exploration, extraction, and production of natural resources, including metals and minerals jumped upto 2 percent following Demerger’s approval from shareholders and creditors.
Price action
With a market capitalization of Rs. 1,70,453.82 crores on Friday, the shares of Vedanta Limited jumped upto 2 percent making a high of Rs. 442.20 per share compared to its previous closing price of Rs. 433.55 per share.
What Happened
Vedanta Limited engaged in the exploration, extraction, and production of natural resources, including metals and minerals, has received approval for the demerger from shareholders and creditors. As per sources In the demerger process, each Vedanta shareholder will receive one additional share in each of the four newly formed companies.
The proposal aims to demerge the company into five independent, globally scaled entities, each specializing in aluminum, iron ore, copper, oil and gas, and power generation. The demerger was approved by 99.99 percent of shareholders, 99.59 percent of secured creditors, and 99.95 percent of unsecured creditors of Vedanta Limited, as per the company’s filing with the stock exchange.
The five companies are Vedanta Aluminium, one of the world’s largest aluminum producers; Vedanta Oil & Gas, India’s largest private-sector crude oil producer; Vedanta Power, one of India’s largest power generators; Vedanta Iron and Steel, a company with a highly scalable ferrous portfolio; and Vedanta Limited, which will include Hindustan Zinc, the world’s second-largest integrated zinc producer and third-largest silver producer.
About the company
Vedanta Limited is a global natural resources company with a diverse portfolio and operates in various countries, with a strong presence in India. The company is one of the largest producers of metals and minerals, and it focuses on sustainable development and operational excellence.
Business Segments and Presence
Vedanta operates in diverse sectors, primarily focusing on metals such as aluminum, copper, zinc, lead, and iron ore. The company is also involved in oil and gas exploration and production, as well as commercial power generation.
In addition to its core operations, Vedanta manufactures pig iron and metallurgical coke and offers shipping and port services. The company has a strong presence in India and across various global regions, including the US, Asia-Pacific, Europe, the Middle East, and Africa.
Financials
The company’s total revenue rose by 9.5 percent from Rs. 36,320 crore to Rs. 39,795 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 2,013 crore to Rs. 3,547 crore during the same period.
Written by Sridhar J
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