Vedanta, an Indian multinational company, is set to finalise the sale of its steel assets by March 2024, according to Anil Agarwal, the group chairman, in an interview.

The decision to divest its steel and steel raw material business was initiated in June as part of Vedanta's strategic shift towards focusing on its core mining business. This move followed the company's entry into the steel production market in 2018 through the acquisition of ESL Steel for 52.30 billion rupees.

Recently, Vedanta announced plans to restructure its operations, creating separate commodity-focused entities to strengthen its financial position. The parent firm, Vedanta Resources, is grappling with a substantial debt of $6.4 billion, leading to downgrades in its credit ratings by agencies.

Agarwal revealed that Vedanta secured finances of about $1 billion in January and anticipates an additional $500-$600 million in August. The company is also engaged in discussions with bondholders regarding its financial arrangements.

Vedanta's restructuring strategy involves splitting its diversified business into six distinct listed companies: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. Shareholders of the existing company will receive one additional share in each newly listed entity for every share of Vedanta they hold. The demerger process, contingent on timely regulatory approvals, is expected to take 12 to 15 months to complete. The announcement of this restructuring plan buoyed investor confidence, leading to a 4% increase in the company's share value.

Source: Livemint