Vedanta Ltd will complete the sale of its steel assets by the month of March 2024. The firm had already begun the review of its steel and steel raw materials business in June this year.
The news was given out by group chairman Anil Agarwal, according to an interview given to CNBC TV-18.
The company has announced plans to sell its non-core business in order to focus on mining. In 2018, they acquired ESL Steel for 52.30 billion rupees to enter the steel production market.
Last week, the company revealed plans to spin off into separate commodity-focused companies to improve their financial situation. Their parent company, Vedanta Resources, is currently struggling with a debt of $6.4 billion, leading to a downgrade in their rating by rating agencies.
During an interview with CNBC-TV18, Agarwal shared that Vedanta has secured finances of about $1 billion in January with an additional $500-$600 million due in August, and they are in discussions with bond holders. The company began a review of its steel and steel raw material business in June which led to the recent announcement of restructuring its major operations.
The restructuring plan involves dividing the existing company into six separate listed companies: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. The demerger process is expected to take 12 to 15 months pending all necessary approvals.
Existing shareholders will receive one additional share of each newly listed entity for every share of Vedanta they currently hold. Investors were pleased with the announcement, resulting in a 4 per cent increase in the company's share value. The company's shares were trading at Rs 230.95 per share on BSE, a 3.77 per cent increase,