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Vedanta’s Demerger Nearing Completion, Plans $2bn Saudi Investment and Potential Dollar Bond
April 22, 2025
Vedanta’s Chairman Anil Agarwal said that the demerger of Vedanta Ltd. is nearing completion. The demerger is an effort to reduce its debt pile of $11bn and to better focus on its diverse businesses. To recall the exercise, the company will demerge into five key units – aluminum, oil & gas, power, iron & steel, and the publicly traded Vedanta Ltd. Each unit will be listed separately, with this simpler structure said to likely attract investors and provide new funding channels while boosting transparency. Separately, Vedanta also secured rights to mine key transition metals like nickel and cobalt in India, aiming to benefit from surging global demand. The group is also expanding internationally, with plans to invest $2bn in Saudi Arabia’s copper-processing industry and develop mines in Africa, including Zambia’s copper-rich Konkola project. To finance this expansion, Vedanta may explore either a potential billion dollar bond issuance or pursue offtake financing, or minority stake sales based on demand. Mr. Agarwal said that he was focused on halving the group’s debt in three years, stressing that existing shareholders will benefit from the demerger, receiving equivalent shares in each new entity. He ruled out any stake sale at the parent level, aiming to maintain strong financial discipline across all units.
Vedanta’s recently issued 9.85% 2033s traded stable at 90.37, yielding 11.71%.
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