Vedanta plans to seek shareholders’ approval to split company businesses into distinct five entities and list them on the exchanges separately.
The company has also delivered the highest dividend yield among its peers.
Last September, the company decided to demerge its business into six entities and list it on the exchanges.
However, last month it decided not to spin off the base metal business till it achieved the desired scale.
In a letter written to shareholders, Anil Agarwal, Chairman of Vedanta, said the company’s wealth creation and dividend yield was the highest at 81 per cent and investment made in the company’s shares has grown five times in the last five years.
He also emphasised the company’s efforts to strengthen businesses to deliver strong growth.
“Anyone who had invested in Vedanta at the start of the past five-year period would have seen their investments multiplying over 4.7 times during this time, both in terms of capital appreciation and cash dividends returned,” he said.
The communication comes after the company delivered a record third quarter EBITDA of ₹11,284 crore, the highest in the last eleven quarters.
Vedanta posted a net profit of ₹4,876 crore, up 70 per cent from the same period last year, while its net debt to EBITDA ratio was 1.4 times – the lowest in the past seven quarters.
During the third quarter, aluminium production increased to 6.14 lakh tonne and 18.2 lakh tonne over nine months, up 3 per cent YoY.
Similarly, alumina production jumped 16 per cent to 15.43 lakh tonne over nine months, while Zinc India saw its highest-ever refined metal output during this period.
Sharing his views on demerger, Agarwal said Vedanta will soon be seeking final approval from its creditors and shareholders on the proposed demerger scheme.
“Post demerger, every Vedanta shareholder will receive 1 additional share in each of the 4 newly demerged companies – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Steel and Ferrous Metals – that this process will deliver,” he said.
“The move will substantially broaden the Vedanta investor base while allowing all new investors the opportunity to choose between these entities and the pure play industry verticals they represent,” he added.