Vedanta to split into five listed cos early next month, says Anil Agarwal

New Delhi: Vedanta Ltd will be split into five listed entities early next month, chairman Anil Agarwal said, adding the move would give each business a “free hand to grow”.

The restructuring will create standalone companies for aluminium, zinc, oil and gas, steel, and power. Agarwal said the demerger would unlock significant shareholder value, with market estimates suggesting the combined valuation could exceed the group’s current $27 billion.

The Mumbai-listed conglomerate, with an enterprise value of about $37 billion, has been working on the split for years to streamline operations and address its debt burden, which stands at around $11 billion.

The new entities will together carry about $7 billion in debt, while a promoter-controlled parent will retain roughly half the shareholding in each.

The plan, which earlier faced resistance from the government, moved ahead after Vedanta successfully overturned a legal challenge last year.

Amid global energy volatility linked to tensions in Iran, Agarwal also called for boosting domestic oil and gas production. He said India’s dependence on imports remains a key vulnerability.

Vedanta’s oil arm, Cairn Oil and Gas, aims to double output to 1 million barrels of oil equivalent per day over the next six years.

India currently imports over 80 per cent of its crude needs, largely from the Middle East.

Vedanta’s shares remain near record highs, supported by firm commodity prices, despite the group recently losing out to Adani Enterprises in the race to acquire Jaiprakash Associates.