Vedanta News: There is a meeting of lenders in February next month regarding the restructuring plan of leading mining company Vedanta. In this, the final decision will be taken on the plan to divide Vedanta’s business into at least five different parts. This is an important step as part of Vedanta Group’s months-long efforts to simplify its business structure and manage its debt burden. The meeting to be held next month is also being held on the orders of the court. According to information received by news agency Bloomberg from sources, in the meeting which is being called on February 18 on the orders of the court, lenders have been called to discuss the plan. After approval of the proposal, shareholders’ approval will have to be obtained.
What is Vedanta’s plan?
In an effort to simplify its business structure, Vedanta had announced a restructuring plan in the last months of 2023. Under this, a plan was made to list the businesses of Aluminium, Oil & Gas, Power and Steel separately so that the overall valuation of the group could be improved and the debt burden of billions of dollars on its parent company Vedanta Resources could be lightened. . This scheme also got the approval of 75 percent of the lenders last year. However, now Vedanta plans to divide its business into Aluminium, Oil & Gas, Power, Steel and Semiconductors, due to which the company’s electronics and copper assets will remain with it. Now the new plan will also have to be approved by 75 percent of the creditors whose meeting is scheduled on February 18 next month. However, there may be changes in the timing of the meeting and the deal structure.
How were the shares in one year?
Vedanta shares have generated huge earnings for investors and more than doubled investors’ money in just 9 months last year. Last year on March 13, 2024, it was at Rs 249.75, which is a one-year low for its shares. From this low level, it jumped 111 percent in 9 months to reach a price of Rs 527.00 on December 16, 2024, which is a record high for its shares. However, the rise in shares stopped here and at present it is more than 16 percent downside from this high.