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Vedanta demerger: Mining giant Vedanta Ltd is set to split into five listed companies, company founder and chairman Anil Agarwal has confirmed.

Mining giant Vedanta Ltd to split into 5 pieces

Vedanta demerger: India's leading mining and metals company, Vedanta, is set to split into five listed companies in April, according to a report in the Financial Times, citing the company's founder and chairman, Anil Agarwal.

He says this move will give the company and its new units complete freedom to grow. Currently, Vedanta Limited operates its separate businesses in the oil and gas, aluminum, zinc, steel, and power sectors together, but is now splitting them into six independent listed companies (one old and five new).

• Vedanta Aluminium – will handle the aluminium business.
• Vedanta Oil and Gas – will look after the oil and gas business.
• Vedanta Steel & Ferrous – will oversee the iron and steel business.
• Vedanta will handle base metals – copper and zinc business.
• Vedanta Power – will look after power generation.
• Vedanta Limited – will look at investments and new businesses such as semiconductors

The company has taken this decision to reduce its debt burden. Vedanta Group companies, especially Vedanta Resources, are heavily indebted. As of December 2025, the company has a debt of approximately ₹60,624 crore (US$6.06 billion). Of this, Vedanta Resources has a debt of approximately $4.9 billion (US$41,000 crore) as of March 2025.

Anil Agarwal stated that this debt will be reduced by $3 billion over the next three years. After the demerger, this debt will be divided among the five newly formed companies based on their cash flow and assets. The separation will increase their value, allowing them to repay debt by selling stakes if necessary. The company's goal is to reduce its debt-to-profit ratio. Furthermore, the separation will result in separate management and boards, which will accelerate operations and increase profits.

Investors stand to benefit from the company's demerger, as if someone currently holds one share of Vedanta Limited, the demerger will result in a total of six shares. While they will retain their Vedanta Limited shares, they will also receive free shares in five new companies. No additional payment will be required for this. The demerger process will begin on April 1, and the new companies could be listed on the market by mid-May.