The company announced the development late Friday. Vedanta’s shares closed at Rs 9.45 or 2% at Rs 462.90 on the NSE.
Mining conglomerates, as separate entities, aim to deceive businesses such as aluminum, oil and gas, electricity, steel and more. Today, these businesses are wrapped in Vedanta Ltd, the Indian division of Vedanta Resources based in the UK.
Please post Demerger. All Vedanta shareholders (both retail and institutional) receive one new share in each newly sold company.
The overall stockholding structure will not change, the letter said.
In a recent letter to shareholders, Chairman Anil Agarwal said that investment in the company will generate 4.7 times more revenue at the beginning of the last five years. The return is a combination of capital gains and cash dividends, he adds, claiming Metals & Mining Company has achieved a dividend yield of 81% during this period. “Everyone who has invested in Vedanta at the beginning of the last five years has seen an increase in investments over 4.7 times so far through capital gains and cash dividends returned,” the letter read. It is also well captured by many tops
Securities companies and major analysts,” the letter said.
In a recent vote of protected and unsecured creditors, 99.5% of shareholders and creditors voted in favor of our Demarger.
Agarwal said he believes each of the four newly sold companies could grow into a $100 billion company.
The Vedanta chair also said the company is currently contributing nearly 1.4% of India’s GDP.
Listed on the Indian exchange in 1998, Vedanta holds over 63.4% of Hindustan Zinc (HZL).
HZL is an integrated producer of zinc and silver.
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