Vedanta’s board has approved a $1.5 billion investment for the aluminium capacity expansion. The company is looking to expand its smelters and increase the share of value-added products in its aluminium portfolio.
Vedanta, a significant player in the metal and mining industry in India, is also expanding its zinc alloys production through its subsidiary Hindustan Zinc. The company had earlier commissioned a 30 kilotonnes per annum capacity plant in Rajasthan.
Vedanta’s plan for a separate listing
Vedanta is one of the biggest natural resource and energy companies in India. The company deals in the mining as well as smelting of industrial metals like steel, aluminium, zinc, copper, and nickel. Additionally, the company has a significant oil and gas business as well. For the better management of different verticals, Vedanta is planning a demerger and listing the different verticals separately on the stock markets.
Earlier in 2023, the company announced its plan to demerge into six entities for aluminium, oil and gas, power, steel, base metals, and Vedanta Ltd for other operations. The company had planned a simple vertical split with allotment of one share of the five companies against one share of Vedanta Ltd.
Vedanta is planning to list the separate entities to trim down its massive $11 billion debt. The listing will provide the company with the capital to not just reduce the debt but also the necessary funds to expand the mining and production operations of the company.
Furthermore, Vedanta is also planning to list Konkola Copper Mines, a mining subsidiary in Zambia, on the US stock market. According to a Reuters report, the company is planning to raise $1 billion through the listing.
Vedanta share rally-
On Monday, May 12, Vedanta’s stock rose 6.4 percent. The share opened at Rs 420.95 and was trading at Rs 434 by 1:30 PM. In the past month, Vedanta’s share price has jumped by 9.70 percent. The investors’ interest in the company stock is primarily driven by the company’s impressive performance in Q4.
Vedanta Ltd posted a double-year-on-year profit in its fourth quarter of FY25. The company reported a profit of Rs 4961 crore in Q4