Vedanta shares rise after getting shareholders & creditors nod for demerger

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Vedanta shares advanced 1.99 per cent in Friday's trade on BSE, logging an intraday high at Rs 442.2 per share. The stock gained after creditors and shareholders approved Vedanta's demerger into five separate entities. The scrip climbed for the fifth straight session and gained over 7 per cent.

 

Around 9:46 AM, Vedanta share price was up 1.73 per cent at Rs 441.05 per share on BSE. In comparison, the BSE Sensex was down 0.28 per cent at 75,521.24. The market capitalisation of the company stood at Rs 1,72,467.67 crore. The 52-week high of the stock was at Rs 527 per share and the 52-week low was at Rs 249.75 per share.

 

Through a filing, Vedanta informed that its demerger-related resolution has been passed by shareholders and creditors — both secured and unsecured, with the requisite majority. The resolution was passed with 99.99 per cent of those participating, voting in favour.

 

Post the demerger, Vedanta will be split into five resulting companies — Vedanta, Vedanta Aluminium Metal, Talwandi Sabo Power Limited, Malco Energy, and Vedanta Iron and Steel.

 

 

In September 2023, Vedanta proposed a plan to demerge the current entity into six, independently listed entities. However, at the start of this year, Vedanta revised the plan to demerge the company instead into five entities, postponing plans to demerge the base metals business.

 

The company also raised Rs 2,600 crore through the issuance of non convertible debentures. In a filing on BSE, Vedanta said the committee of directors of the company has approved the allotment of 2,06,000 rupee-denominated unsecured, redeemable, rated, listed, non-convertible debentures of face value of Rs 1 lakh each, aggregating to Rs 2,060 crore (Series 1 debentures).

 

Besides, it has allotted 54,000 rupee-denominated unsecured, redeemable, rated, listed, non-convertible debentures of face value of Rs 1 lakh each, aggregating to Rs 540 crores (series 2 debentures), Vedanta said.

 

 

In the past one year, Vedanta shares have gained 60 per cent against Sensex's rise of 4 per cent.