Vedanta targets doubling $27 billion market cap through five-entity split: Report

Vedanta Limited will break up into five separately listed companies early next month, Chairman Anil Agarwal said, pitching the long-delayed restructuring as a move that could significantly boost valuation and ease debt pressures, according to a report by the Financial Times.

The Mumbai-listed group, with an enterprise value of about $37 billion, has been working on the demerger for several years as part of efforts to streamline operations and reduce its heavy debt burden. The plan had earlier faced resistance from the Indian government but was cleared after a legal challenge was overturned last year, the FT reported.

Agarwal told the FT the split would allow each business vertical to operate independently, saying it “will create phenomenal shareholder value” and that the new entities “will have a free hand to grow”.


The five businesses will span aluminium, zinc, oil and gas, steel, and power. A privately held parent company controlled by Agarwal will retain roughly half the shareholding in each of the demerged entities, he added.

Vedanta’s total debt stands at around $11 billion, according to S&P Capital IQ, while the newly carved-out firms are expected to collectively carry about $7 billion in debt.

Bet on doubling valuation post-split

Agarwal expressed confidence that the restructuring could sharply re-rate the group’s market value, which currently stands near $27 billion.

“The combined market capitalisation of the five companies would be much higher,” he told the Financial Times, adding: “People are saying that, comfortably, it should double.”

The company’s shares have remained close to record highs touched in January, supported by strong global commodity prices. The demerger is expected to sharpen investor focus on individual verticals, potentially unlocking higher valuations for each segment.

The restructuring plan, first proposed in 2023, is also aimed at simplifying the group’s complex corporate structure and improving access to capital for each business independently.

India’s oil import dependence risks vulnerability: Anil Agarwal

Amid ongoing geopolitical tensions, particularly the Iran-Israel conflict, Agarwal also flagged India’s dependence on imported energy as a strategic risk.

He said that India should ramp up domestic oil and gas production, warning that heavy reliance on imports—over 80 per cent of crude requirements, leaves the country exposed to global disruptions.

Vedanta’s oil and gas arm, Cairn Oil and Gas, is targeting a sharp increase in output, aiming to double production to 1 million barrels of oil equivalent per day within six years.

Other players, including state-run Oil and Natural Gas Corporation, have also signalled plans to step up domestic exploration in response to elevated energy prices triggered by global conflicts.

Separately, Vedanta recently lost out to Adani Enterprises in the race to acquire debt-laden Jaiprakash Associates, despite submitting a higher bid, highlighting intensifying competition in India’s infrastructure and energy space.