Vedanta Demerger Plan Unveiled, Anil Agarwal Confirms April Timeline for Split into Five Entities

Vedanta to Undergo Restructuring into Five Listed Companies

Vedanta, a natural resources conglomerate with an enterprise value of $37 billion, is set to split into five listed companies in April. The restructuring plan, announced by Anil Agarwal, the firm's founder and chairman, aims to give each new entity a "free hand to grow" as independent units.

The new structure will comprise five separate units: aluminium, zinc, oil and gas, steel, and power. Vedanta has been planning to restructure for several years, with the goal of reducing its debt burden. The company's collective debt in the five new entities will be approximately $7 billion, down from the current level of $37 billion.

The restructuring plan is expected to create significant shareholder value, with Anil Agarwal estimating that the combined market capitalization of the five new entities will be higher than the current $27 billion value. The new companies will be able to grow independently, without the constraints of the conglomerate structure.

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Shareholding Pattern The private parent company controlled by Anil Agarwal will retain approximately half the shares of each new entity.

Debt Reduction Vedanta has made significant progress in reducing its debt, with its parent company, Vedanta Resources Ltd, reducing net debt to approximately $4.8 billion as of December 2025 from $8.9 billion in March 2022.

Fundraising Earlier in March, Vedanta Ltd announced that its committee of directors has approved raising up to ₹2,575 crore through the issuance of debentures. The fundraising is part of Vedanta's efforts to diversify funding sources and strengthen its balance sheet.

Cairn Oil and Gas The company's subsidiary, Cairn Oil and Gas, aims to double its production in the next six years, with a target of producing 1 million barrels of oil equivalent per day.

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