Vedanta plans to seek shareholders’ approval to split the company’s businesses into five entities and list them individually on the exchanges. The company has also delivered the highest dividend yield among its peers.
Last September, the company decided to demerge its business into six entities for listing.
However, last month it decided not to spin off the base metal business till it achieved the desired scale.
In a letter to shareholders, Anil Agarwal, Chairman of Vedanta, said the company’s wealth creation and dividend yield was the highest at 81 per cent and investment made in the company’s shares had grown five times in the last five years.
He also emphasised the company’s efforts to strengthen businesses to deliver strong growth.
“Anyone who had invested in Vedanta at the start of the past five-year period would have seen their investments multiplying over 4.7 times during this time, both in terms of capital appreciation and cash dividends returned,” he said.
The communication comes after the company delivered a record third quarter EBITDA of ₹11,284 crore, the highest in the last eleven quarters.
net profit
Vedanta posted a net profit of ₹4,876 crore, up 70 per cent from the same period last year, while its net debt to EBITDA ratio was 1.4 times — the lowest in the past seven quarters.
“Post-demerger, every Vedanta shareholder will receive an additional share in each of the four newly demerged companies — Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Steel and Ferrous Metals,” he said.
