Shares of steel and mining main Vedanta gained over 3% in commerce on Tuesday, March 18, after Chairman Anil Agarwal projected robust progress potential for its demerged entities.
Agarwal in a letter to the shareholders mentioned that every of the 4 newly-demerged firms has the potential to develop right into a $100 billion firm, emphasizing that immediately the world is all about pure-play companies.
“I envision that every of the 4 newly demerged firms has the potential to develop right into a $100 billion firm. When you take a look at the place we’re headed as a world financial system and the demand for such merchandise, these firms and their merchandise are the necessity of the hour,” Agarwal mentioned.
He additionally added that every of the demerged entities has the potential to develop right into a Vedanta by itself, and “the time to behave is now”.
“Whereas Vedanta presently contributes near 1.4% of India’s GDP, there’s a want for a lot of extra Vedantas to step ahead to appreciate the sector’s true potential. Our ongoing proposed demerger would assist on this course by the creation of 4 new pure resource-focused entities,” he claimed.
Agarwal careworn upon the robust returns that Vedanta has generated for its shareholders. Anybody who invested in Vedanta 5 years in the past, would have seen their wealth multiplying by 4.7 instances, he claimed, through capital appreciation and dividends returned.
Vedanta Demerger
In February, 99.5% of shareholders and collectors voted in favour of demerging Vedanta into 5 companies, in a bid to simplify construction, cut back debt and unlock worth.
Put up demerger, each Vedanta shareholder – each retail and institutional – will obtain one new share in every of the newly demerged firms.
“We’re a high-growth enterprise and the demand for our vital minerals and transition metals continues to develop at a double-digit fee, one of many highest on the earth,” Agarwal mentioned.
Vedanta Share Value Pattern
Following Anil Agarwal’s tackle to the shareholders, shares of Vedanta jumped 3% to hit the day’s excessive of ₹460.85 apiece on the BSE.
Within the final one yr, the large-cap metals firm has surged 68.60%, taking its market capitalisation to ₹1.78 lakh crore.
Regardless of the continued selloff within the Indian inventory market in 2025, the corporate shares have held their floor, rising 3% on a year-to-date (YTD) Foundation as in opposition to an over 4% decline within the BSE barometer Sensex.
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