Vedanta drops 3% after mining giant says it is considering overhauling company structure

NEW DELHI: Shares of fell 3% in early trading on Thursday after the mining company, led by billionaire Anil Agarwal, said it was considering a complete overhaul of its corporate structure.

The company’s certificate hit a low of Rs 328.15 on the National Stock Exchange from the previous close of Rs 338.20.

The company said on Wednesday that the changes it was considering would include splitting and listing the aluminum, iron and steel, and oil and gas companies as stand-alone entities in order to unlock value for shareholders.

While the London-based parent company will continue to be the holding company for the diversified mining group, Vedanta and the three companies will operate in parallel as independent listed companies, Chairman Agarwal said in a PTI report.

The structure envisioned by Vedanta is diametrically opposed to what has been pursued over the past two years.

The group first merged Cairn India – the oil and gas company it had acquired from UK’s Cairn Energy PLC – into Vedanta Ltd. .

“The board of directors of the company has decided that, given the scale, nature and potential opportunities for the various lines of business of the company, the company should undertake a comprehensive review of the structure of the company. ‘business and assess a full range of options and alternatives (including spin-offs, spin-offs, strategic partnerships, etc.) to unlock value and simplify the business structure, ”Vedanta said in a stock market file.