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A very historic and big day is about to come for the shareholders of Vedanta Limited led by veteran industrialist Anil Agarwal. A big update has come out regarding the much awaited demerger of the company i.e. division of business. Four new companies of Vedanta Group are all set to be listed on the Indian Stock Exchange (NSE and BSE) on 15th June. This move of the company will not only unlock the value of Vedanta, but is also expected to significantly increase the wealth of its existing shareholders. Market experts are considering this demerger as one of the biggest changes in the Indian corporate world.
These 4 new companies will enter the market after demerger
Vedanta Limited had approved this demerger plan to enhance the value of its various businesses by separating them. Under this mega restructuring, the four new companies which are going to be listed on the stock exchange on June 15 include Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power and Vedanta Base Metals. Till now all these businesses were operating under the main company Vedanta Limited, but now after being listed as independent companies, all of them will be able to focus directly on their respective sectors and investors will be able to directly benefit from the growth of each sector.
Know in what ratio the existing shareholders will get new shares.
The biggest question after this big demerger is what and how much benefit will the existing investors get from it. According to the rules decided by the company, investors who have shares of Vedanta Limited in their portfolio till the record date will be given shares of these four new companies absolutely free under a fixed ratio (Share Allotment Ratio) for each share of the main company. This simply means that investors will get to own shares of five different companies instead of a single share without spending any extra money, making their portfolio quite diversified and strong.
What are the estimates of market leaders and brokerage houses?
Dalal Street analysts and big brokerage houses have responded very positively to this big step of Vedanta. Market experts say that after demerger, separation of companies will make their debt and revenue model completely transparent. This will make it very easy for global investors to invest directly in these sectors. After this listing on June 15, huge fluctuations and volumes can be seen in Vedanta shares. This value unlocking can prove to be a game changer for long term investors, which can provide them with excellent dividends as well as strong capital gains in the future.