In a major initiative, billionaire Anil Agarwal recently announced a proposal to delist his flagship Vedanta Ltd from the Indian stock exchanges.

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The company has fixed the indicative price for the same at Rs 87.50 per share and aims to complete the delisting process in two months, sources privy to the developments told CNBC-TV18.

According to multiple people familiar with the development, suggested that this is a step towards the simplification of the group to maximise resources for repayment of group debt worth over $10 billion.

Promoter holding structure may be simplified to enable the debt repayment. Delisting will also give direct access to Hindustan Zinc Ltd (HZL)

cash and stop dividend leakage, source add.

Post-delisting, Vedanta Ltd and Vedanta Resources are likely to be merged. Merger of private entities will also lead to tax efficiency.

"JP Morgan is likely to fund promoters for delisting Vedanta. Promoters are also in talks with other banks like CITI," sources in the know told CNBC-TV18.

Vedanta Group has total debt close to $11 billion and an interest cost $1.5 bn approx. Meanwhile, Vedanta Resources was delisted from London Stock Exchange in 2018.