Vedanta shares rally over 3% as SBI approves demerger plans
Vedanta's shares surged 3.6% on BSE to Rs 457.05 as SBI approved its demerger of its existing businesses into six independent entities, which is aimed for completion by December 2024.
Shares of rallied 3.6% today on to day’s high of Rs 457.05 as the company got a nod from () to proceed with the demerger of its existing businesses into six ."With the nod by SBI, a majority of lenders have given the go-ahead for the demerger, and a few remaining ones are likely to follow in the next few weeks," one of the two bankers aware of the development told .
The approval from the state-run lender was crucial for as it is seen as the last major compliance requirement for the proposed demerger. This development was keenly watched by the market and now paves the way for the $20 billion demerger.
It was in September that India's largest announced its plans to separate its six core businesses.
The demerger will create independent companies housing the , oil & gas, , and ferrous materials, and base metals businesses, while the existing and new incubated businesses will remain under Vedanta.
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Last month, chairman Anil Aggarwal said in a letter to stakeholders that the demerger of five of its key businesses will be completed by December 2024.
Earlier in May, Agarwal had emphasized that they are going strong in their business and have a plan to invest USD 20 billion across sectors in four years focusing on technology, electronics, and glass businesses apart from the existing .
have gained nearly 64% in the last one year while in the current calendar year alone, the stock has surged 77%.
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Source: Stocks-Markets-Economic Times
