India's Vedanta to Split Into Six Listed Units Amid Debt Concerns

By Giulia Petroni

Indian mining and energy group Vedanta Ltd. plans to spin off and list its business units on the stock market in a bid to attract investments amid efforts to reduce its debt load, splitting into six entities.

The plan is to separate the business into listed verticals--aluminum, oil and gas, power, steel and ferrous materials, base metals and Vedanta Ltd.--the company said on Friday. For every share of Vedanta Ltd., shareholders will receive one share of each of the five newly listed companies.

"Once demerged, each independent entity will have greater freedom to grow to its potential and true value via an independent management, capital allocation and niche strategies for growth," the company said. "It will also give global and Indian investors potential to invest in their preferred vertical, broadening the investor base for Vedanta assets."

Details on when the demerge is expected to happen weren't released.

The move comes as the group's U.K.-based subsidiary Vedanta Resources struggles with high debt and has raised investors' concerns due to recent rating downgrades and upcoming debt obligations.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

September 29, 2023 10:03 ET (14:03 GMT)

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