Anil Agarwal-led Vedanta Ltd. has incorporated its base metals unit Vedanta Base Metals Ltd. with an authorised share capital of Rs 1 lakh, the company said in an exchange filing.

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The unit has been incorporated to implement the demerger scheme that was revealed on September 29. 100% shareholding of this unit is currently held by Vedanta Ltd.

Vedanta Base Metals will have a diversified portfolio of international base metal assets including Tuticorin, Fujairah Gold, Silvassa and VZL. The unit contributed 5% to the company's consolidated operating profit in financial year 2023.

“By demerging our business units, we believe we will unlock value and potential for faster growth in each vertical,” Vedanta Chairman Anil Agarwal had said on October 29.

Vedanta's demerger is planned as a vertical split. Shareholders of Vedanta Ltd. will get one share in each of the five newly listed entities, for every one share they hold in the currently listed entity.

The six independent listed entities are: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.

Shares of Vedanta have surged to the day's high, currently trading 3% higher at Rs 228.80. The stock has recovered 10% from its 52-week low of Rs 208.

First Published:Oct 11, 2023 12:41 PM IST