Anil Agarwal, the billionaire chairman of Vedanta Ltd, said the company is thinking of listing part or all of its subsidiaries separately.
Agarwal expressed his desire for investors to be able to own shares in a variety of companies, fostering investment opportunities in many industries, in a YouTube video message. He wants to hear the ideas of the shareholders and says that the reorganization might improve dividends and returns.
In a YouTube video message, Agarwal stated, "I have asked all my advisors and my people, can we have all products (businesses that Vedanta operates) or some products to be independent."
"If you own one share in Vedanta Ltd., you will also own numerous shares of other businesses, giving you the chance to invest in a variety of ventures. Some multinational businesses will have the chance to invest in a specific area.
This proposal is distinct from Agarwal's failed attempt to delist Vedanta Ltd. in 2020 in order to simplify the corporate structure. The parent business, Vedanta Resources, is battling liquidity issues and is dealing with credit rating downgrades as a result of worries over debt.
Prior to this year, Agarwal planned to have Hindustan Zinc, a Vedanta Ltd subsidiary, buy some zinc assets from the parent in a $2.98 billion deal, therefore reducing the group's $7.7 billion debt. The initiative was rejected by the Indian government, which owns around 30% of Hindustan Zinc.
In June, Vedanta also carried out a strategic review of its steel and steel raw materials businesses while requesting funding from its divisions to reduce its debt load. Up until August 2024, Vedanta Resources is expected to have a $2 billion funding shortfall, according to S&P Global Ratings.Â
