Mining major Vedanta is understood to have secured creditor approval for its proposed restructuring plan, with over 80% of creditors by debt value reportedly giving the go-ahead. The company required approval from at least 75% of creditors to proceed with the demerger proposal.
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Vedanta declined to comment on the matter when contacted.
On February 18, Vedanta held meetings with its shareholders and creditors to seek approval for the restructuring, which will create four new companies in addition to the existing Vedanta Limited — Vedanta Steel and Ferrous Metals, Vedanta Oil and Gas, Vedanta Aluminium and Vedanta Power.
The Vedanta board approved the demerger in September 2023, and the company subsequently secured No Objection Certificates (NOCs) from BSE and NSE. Post-demerger, existing shareholders will receive one share each of the new entities.
“This will substantially broaden Vedanta’s investor base while allowing new investors to choose between these entities and the pure-play industry verticals they represent,” Vedanta chairman Anil Agarwal wrote in a recent letter to shareholders.
Shares of Vedanta Limited rose 0.71% to Rs 418.05 at the end of day’s trading on February 18, after hitting an intraday low of Rs 405.25.
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Vedanta reported 70% year-on-year rise in net profit at Rs 4,876 crore for the quarter ended December 31, and its highest earnings before interest, taxation, depreciation and amortisation (Ebitda) in 11 quarters at Rs 11, 284 crore. Its revenue rose 10% year-on-year at Rs 39, 115 crore.
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