Vedanta Looking For Separate Listings Of Different Businesses: Chairman Anil Agarwal

In a video message, Anil Agarwal said the firm has a diversified presence in oil and gas, metals, mining, and chipmaking, and a separate listing of different businesses will help them grow many folds

Vedanta Ltd. is considering separately listing all or some of its businesses to unlock shareholder value, said founder and chairman of the mining giant Anil Agarwal on Friday. In a video message, Agarwal said the company has a diversified presence in oil and gas, metals, mining, and chipmaking, and a separate listing of different businesses will help them grow many folds. 

"Vedanta, in last two decades, has gone into the business which is more and more import substitute, very difficult for the entry into these areas. We have the business of oil and gas, the largest producer of aluminum, completely integrated power, copper, zinc, silver, lead, iron and steel, nickel, ferroalloys, semiconductors, display glass, and more," billionaire Anil Agarwal said.

"The whole world is looking to invest in India. I have been told that investors like pure play. I have asked all my advisors and my people to look (if we) can have these all products or some products to be independent, so the independent management and leadership can grow this business to the highest level," he added. 

At present, all the businesses under Vedanta are listed within Vedanta Ltd. While the parent company, Vedanta Resources, based in London, plays the role of the holding entity for the diverse mining conglomerate. 

"This means if you have one share of Vedanta Ltd, you will have many shares of other (demerged) companies," Agarwal said, adding that the company now seeks shareholder and stakeholder feedback for a possible separate listing of businesses. However, there is no set timeframes for the decision.

"Some international companies want to invest in a particular area, they will get that opportunity. I would also like to have your view so we can take that step forward," he said. The move would offer shareholders a better return and dividend, Agarwal said. 

Recently, Vedanta has reportedly encountered challenges in getting project financing. Vedanta Resources, the parent company of Vedanta, has been actively seeking to secure funds as it faces challenges in its financial landscape. Credit rating agencies have taken a negative stance, downgrading their outlook due to apprehensions about funding uncertainties and the ability to fulfill debt commitments.

According to a Reuters report, Agarwal has been on an endeavor to reduce the conglomerate's debt of $7.7 billion. He pursued a strategy of divesting certain zinc assets held by the parent company to Hindustan Zinc, a subsidiary of Vedanta Ltd. This transaction amounted to $2.98 billion.

According to a PTI report, in November 2021, Agarwal first talked about the concept of restructuring the corporate framework involving demergers, spin-offs, and strategic collaborations. The primary objective behind this move was to simplify and streamline the corporate setup, thereby unlocking value for all stakeholders. This strategy aimed to establish individual businesses with enhanced potential to leverage their unique market positions, fostering long-term growth and facilitating strategic partnerships. However, this initiative failed to materialise.