Vedanta Ltd, a mining corporation based in Mumbai, announced on November 17 that it is considering overhauling its corporate structure. The corporation is chewing over all possibilities, including demergers, spin-offs, and strategic partnerships, as well as listing its aluminium, iron and steel, and oil and gas verticals as separate entities.

The mining firm in a regulatory filing said that the “Board of Directors of Vedanta Ltd has decided that, considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives (including demerger(s), a spin-off(s), strategic partnerships etc.) for unlocking value and simplification of corporate structure.”

The company added, “Subject to a detailed evaluation, it is the intention that the aluminium, iron and steel, and oil and gas businesses would be housed in standalone listed entities.”

To execute the plan, the Board of Directors has constituted a committee of directors who will evaluate and recommend possible options and alternatives to the board.

The Committee Will Work Upon:

• Simplification and streamlining of corporate structure

• Unlocking value for all stakeholders

• Creation of businesses that are positioned better to capitalize on their distinct market positions and deliver long-term growth and enable strategic partnerships

• Tailored capital structure and capital allocation policies based on business-specific dynamics

• Distinct investment profiles to attract deeper plus broader investor bases

• Accelerate emissions reduction and strong ESG practices.

Vedanta has also appointed various advisors to help the board in weighing the options.

Chairman Anil Agarwal said, “ This step, which we announced today, whilst pending a detailed evaluation, is designed to create independent, industry-leading, global public companies, where each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees.”