InvestorQ : Why and how is Vedanta planning to demerge the company?
sarah Leo made post

Why and how is Vedanta planning to demerge the company?

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Rashi Mehra answered.
2 weeks ago
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At the outset let me clarify that Vedanta is planning to restructure the company and one of the options being considered by Vedanta is to demerge various specific commodity businesses and list them on the bourses. This will entail the listing of the aluminium, steel, copper and oil & gas businesses as standalone entities.

That makes sense if you consider the recent spike in commodity prices, and standalone companies like Hindalco and Tata Steel have done very well. Sterlite also believes this move would result in better SOTP valuations. Once restructuring is done, the shareholders of Vedanta will automatically be allotted shares of all the individual companies. This somewhat like the splitting exercise that Adani Group undertook in 2015, which was value accretive.

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