Vedanta Ltd. is set to demerge its real estate business into a newly formed entity, Vedanta Property Platforms, as part of a scheme of arrangement subject to statutory and regulatory approvals. Shareholders will receive one equity share of Vedanta Property Platforms for every 20 shares held in Vedanta, marking another significant step in the company's restructuring efforts.
Under the proposed demerger, Vedanta Property Platforms will seek listings on the BSE and NSE. The real estate portfolio to be demerged includes approximately 2,200 acres of industrial land and 55,000 sq ft of residential and commercial properties. This portfolio is valued at 22 assets across India, including land parcels and buildings in Maharashtra, Goa, Tamil Nadu, Gujarat, and Karnataka.
The move follows Vedanta's earlier announcement in April of a five-way split, where shareholders received shares in Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel. This restructuring is aimed at unlocking value for shareholders by listing separate entities on the stock exchanges.
“The real estate demerger into Vedanta Property Platforms follows the same value-unlock logic as the five-way split.”
Harshal Dasani, Business Head at INVasset PMS
The demerger is expected to simplify Vedanta's business structure, focusing it more on its core zinc-led commodity operations. However, the process involves a two-year timeline to FY28 and will be executed through the National Company Law Tribunal (NCLT).
Vedanta shares have shown some recovery, closing at Rs 267 on Monday, after hitting a 52-week low of Rs 249.70 in July. The company's market capitalisation stands at over Rs 1.04 lakh crore.
Background
Vedanta's restructuring efforts are part of a broader trend in the Indian corporate sector to unlock shareholder value through demergers and spin-offs. This strategy allows companies to focus on their core operations while providing investors with more targeted investment opportunities.
Looking ahead, investors will be keenly watching for the announcement of the record date for the demerger and the subsequent listing of Vedanta Property Platforms. This move is expected to further streamline Vedanta's operations and potentially enhance shareholder value.
