Vedanta share price jumps over 4% on demerger plan, caution on high debt

In this article, we will talk about Vedanta’s share price. Vedanta Resources Limited is a globally diversified natural resources company. We extract and process minerals, oil, and gas, and engage more than 65,000 employees and contractors, primarily in India. Vedanta share price earned more than 4% in early trade on Tuesday after the company agreed on restructuring that includes the demerger of its diversified business into six separate listed companies. Now many people are very curious to know about the whole information about the news. here we have more information about the news and we will share it with you in this article. As per the report, Vedanta shares gained more than 4.42% to 232.35 apiece on the BSE. In a more open value for its shareholders, the billionaire Anil Agrawal led Vedanta Group through a complete overhaul of its Indian metals, mining, and energy conglomerate.


Vedanta demerger

Under the proposed demerger, the existing company is going to be divided into Vedanta Aluminum,  Vedanta Power, Vedanta Steel, Vedanta Oil and Gas Vedanta Base Metals, Vedanta Ltd, and Ferrous Materials. Shareholders will get an additional one share of each just listed entity for one share held in Vedanta. The demerger and listing of separate business units has been anticipated to take 12 -15 months, subject to all the necessary approvals. Analysts believe the newly listed emerged companies have been expected to unlock stakeholder value, enhance competencies, and attract strategic investment. Scroll down to the next page for more information about the news.

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Demerger to unlock value

Vikash Singh, Research Analyst at Phillip Capital ” We think this action will have a positive long-term effect, as it will give the group flexibility, open value for investors, and the parent company would have the choice to to liquidate fully/partly certain help to handle its debt repayments,”. The analyst elevated Vedanta to Buy and has an unchanged target price of  290 for each share.

Kunal Kothari, Research Analyst- Metals & Mining at Centrum Broking believes the demerger into six commodities is the right step and opens value for investors in the future. Nowadays, the extensive focus is on the debt repayment obligation of the parent company which is under actions that have been uncertain. The brand fee continues to flow from Vedanta Ltd as per the recent agreements and will be altered once the demerger is completed. Here we have shared all the information about the news. Stay tuned to us for more updates.

Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.