look news india
Vedanta Limited, a leading mining and metals company led by veteran industrialist Anil Aggarwal, has given a huge gift to its shareholders. The company has officially announced the demerger of its real estate business from the main business. The main objective of this strategic decision is to unlock the real value of the fixed assets held by the company. Under this process of demerger, investors of Vedanta are going to get shares of the new company for free without any additional cost, due to which there is huge enthusiasm among the investors.
What is the complete formula of demerger? How will investors benefit?
According to the official information given by the company, this demerger will be completed under a scheme of arrangement between Vedanta Limited and ‘Vedanta Property Platforms Limited’ (VPPL). As per the ratio decided under this demerger plan, if an investor holds 20 shares of Vedanta Limited, he will get in return 1 share of ‘Vedanta Property Platforms Limited’ (VPPL) completely free of cost. Through this vertical split, the company is transferring its real estate assets to a separate and independent entity, while the rest of Vedanta’s core business will continue to operate under its existing structure. To complete this process, the company will make a formal application for No Objection Letter (NOC) from Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in due course of time.
How big is this real estate portfolio of Vedanta?
This newly demerged real estate portfolio of Vedanta is extremely large and valuable. The company has a total of about 2,264 acres of industrial land and about 53,185 square feet of residential and commercial space in different parts of the country. Spread across India, the portfolio comprises a total of 22 prime assets, primarily located in states such as Maharashtra, Goa, Tamil Nadu, Gujarat and Karnataka. This vast portfolio includes large tracts of vacant land as well as modern flats, ready-made buildings and luxurious bungalows. The company believes that till now these assets were having limited use and being part of the core business, their true value was not being reflected in the market, but now after separation, the shareholders will get direct and huge financial benefits.
How were Vedanta’s recent financial results?
Along with the announcement of demerger of real estate business, Vedanta Limited has also released its excellent financial results for the first quarter (April-June) of the current financial year 2026-27. According to the data, the company’s net profit in the quarter under review has seen a huge jump of 71.8 percent year-on-year to reach ₹ 5,473 crore, whereas it was ₹ 3,185 crore in the same quarter of the last financial year. Apart from this, the company’s operating income also increased by 53.6 percent to ₹ 24,205 crore, as against ₹ 15,754 crore in the same period last year. Although the company’s total expenses increased to ₹17,558 crore during the quarter due to expansion and business activities, the strong profit figures have further strengthened the company’s position in the market.