Natural resources conglomerate Vedanta is set to split into five listed companies early in April, Financial Times reported citing the firm’s founder and chairman Anil Agarwal.
According to Agarwal, who revealed Vedanta’s plans to FT in a conversation, the move will give the conglomerate and its new units a “free hand to grow”.
The new structure would give rise to five separate units in aluminium, zinc, oil and gas, steel, and power, Anil Agarwal noted. Vedanta, which is one of India’s largest resources companies with an enterprise value of $37 billion, has been planning to restructure for several years.
The restructure plan comes amid Vendanta’s efforts to reduce the debt it has been struggling with for years. However, the plan to split has faced opposition from the Indian government for years, as per FT.
Agarwal said that following the Vedanta demerger, the company’s collective debt in the five new entities will be around $7 billion.
Immense shareholder value
Speaking to FT, Vedanta chairman Anil Agarwal indicated that the new companies will bring in success to the conglomerate.
“It will create phenomenal shareholder value,” Agarwal told FT. This is because the new companies “will have a free hand to grow” as independent entities, he said.
He said that the combined market capitalisation of the five new entities rising out of Vedanta Ltd. will be much higher than the current $27 billion value.
“People are saying that, comfortably, it should double,” he said.
Speaking about the shareholding pattern, Agarwal noted that a private parent company controlled by him will retain approximately half the shares of each new entity.
The split comes after Vedanta last year overturned a legal challenge to its demerger from the Indian government, clearing the path for its restructuring plans.
Anil Agarwal calls for domestic energy production
Anil Agarwal in his conversation with the Financial Times further called for India to increase its domestic production of oil and gas, saying that New Delhi’s dependence on heavy imports was a vulnerability.
The company’s subsidiary, Cairn Oil and Gas, one of the five units that will be split, aims to double its production in the next six years. The unit plans to produce 1 million barrels of oil equivalent per day.
Vedanta to raise ₹2,575 crore
Earlier in March, Vedanta Ltd. said its committee of directors has approved raising up to ₹2,575 crore through issuance of debentures.
The fundraising is part of Vedanta’s efforts to diversify funding sources and strengthen its balance sheet as it continues to refinance debt and reduce borrowing costs.
The committee has approved the allotment of 2,57,500 unsecured, redeemable, rated, listed, non-convertible debentures of face value of ₹1,00,000 each, aggregating to ₹2,575 crore on a private placement basis, a BSE filing on 16 March said.
Vedanta has seen strong investor interest in recent debt issuances.
Vedanta Resources Ltd, the parent of Vedanta Ltd, has reduced net debt to about $4.8 billion as of December 2025 from about $8.9 billion in March 2022.
Vedanta Ltd is a leading global producer of metals, critical minerals, oil & gas, power and technology.
- Vedanta is set to demerge into five separate companies to facilitate growth.
- The restructuring aims to address the company’s longstanding debt issues.
- The move is expected to significantly increase shareholder value and market capitalisation.
