India’s Vedanta Ltd is intending to finalize the sale of its steel assets by March 2024, chairman Anil Agarwal was quoted as saying by CNBC-TV18 on Tuesday.
Also read: Vedanta Share Price Rises 4% To Rs 232 Per Share; Here's Why
In June, the company initiated a review of its steel and steel raw material operations. This recent announcement follows Vedanta's approval of a significant restructuring of its core operations. Investors welcomed the news with enthusiasm, leading to a surge in the company's share value of up to 4% today.
At 2:30 pm, on the BSE, the company's shares were being traded at ₹231.95 per share, marking a 4.25% increase.
The company's restructuring strategy involves the separation of its diversified business into six distinct publicly-listed entities. The demerger process is expected to span approximately 12 to 15 months, contingent upon the timely receipt of all required approvals.
In accordance with the proposed demerger, the current company will undergo a division into distinct entities, namely Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.
Existing shareholders of the company will be entitled to receive one additional share in each of these newly established entities for every one share they currently hold in Vedanta.