Vedanta has said that the company will not make any changes in its structure.
Mining company Vedanta has said that the company will not make any changes in its structure. That is, the company has canceled the plan of restructuring or restructuring. You can also understand this in such a way that the company will continue to work in the existing structure. This statement is significant because in November 2021, the board had decided that the company should review the corporate structure. Not only this, with this, different options should also be considered to simplify the structure of the company. Experts believed that a decision could also be taken to list some units separately to bring out the true value of them.
But, according to the company, the existing structure is better and is consistent in the functioning of different companies. It has also been said that the company will invest in select acquisitions which are conducive to the existing business or which are in sync with the core business. If the company wins the bid of BPCL, a fund will be created for the acquisition with a strategic investor so that Vedanta's balance sheet is not put under pressure.
The position is also clear on capital allocation
Apart from this, the company has also clarified the position on capital allocation. The company said that excluding Hindustan Zinc, 30 percent of the profits will be distributed as dividend. The dividend received from Hindustan Zinc will also be distributed, on which the final decision will be taken by the board.
Let us tell you that earlier the company's chairman Anil Agarwal had said that he wants to simplify and streamline the corporate structure for value addition. Zinc business is already under a listed company.
According to the plan, the aluminum, iron and steel and oil and gas businesses were to be separated as listed entities. This will add value to all stakeholders and create businesses that can better leverage different market conditions, deliver long-term growth and enable strategic partnerships, Agarwal told PTI. He had said that demerger of businesses is a normal process. The market is good and production is going well. That's why they believe that having separate companies will add value.
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