Limited (VEDL) is a subsidiary of the Vedanta group. The demerger of entities within the Vedanta group aims to address the debt issue by separating the debt burdens of the different entities.
According to Deven Choksey, the promoter of KRChoksey Group, the demerger will help in dismantling the debt problem the group level. This that by separating the entities, the debt burden will be spread out and managed independently by each entity, reducing the overall debt load on the Vedanta group as a whole.
On October 3, the shares of Vedanta opened 2.27 percent higher following the company’s announcement of a plan to demerge its businesses into six separate companies, including a holding company. At mid-day, the stocks were trading at Rs 232.30, which represents a 4.3 percent increase on the National Stock Exchange (NSE). This suggests that investors responded positively to the news of the demerger and saw potential value in the newly created entities.
The market’s positive reaction to the announcement reflects investors’ confidence in Vedanta’s restructuring plan and the potential growth opportunities it may create for the company and its.
