 "Anil Agarwal, Vedanta Chairman")
Sharing an update on Vedanta’s demerger, company chairman Anil Agarwal told shareholders that the plan is on the National Company Law Tribunal’s (NCLT’s) table for approval.
The billionaire also added that there is no immediate plan for a rights issue.
“We have received all the lenders’ approvals,” said Agarwal, while addressing shareholders at the company’s annual general meeting (AGM) on Wednesday.
The timeline for the demerger is the current financial year.
In September 2023, Vedanta had said it will demerge into six different listed entities — Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.
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“We are going ahead with the demerger of our businesses, which will lead to the creation of 6 strong companies, each a Vedanta in its own right,” Agarwal said.
In his address, Agarwal also informed shareholders of his plans to invest $8 billion as capital expenditure (capex). Replying to shareholder queries, he added that this capex will be fully funded through internal accruals.
“Our investment in growth projects is substantial, amounting to approximately $8 billion. These include our aluminium smelter, alumina refinery, copper smelter in Saudi Arabia, investment in new oil and gas blocks, and expansion of our steel and iron ore businesses,” he added.
Agarwal also said, “We are well positioned to meet our earnings before interest, taxation, depreciation and ammortisation (Ebitda) target of $10 billion in the near future.”
Commenting on the opportunities in the minerals and metals sector, he said, “Today, 50 per cent of our imports, worth more than $350 billion, are minerals and metals, including oil and gas. This will double and triple as the economy grows at a fast rate. This sector is a $1-trillion opportunity.”
