Anagram Partners has acted for Vedanta, India’s leading diversified natural resources powerhouse with a valuation of USD10 billion, on its recent restructuring initiative.
The company executed a strategic demerger, which unfolded through a straightforward vertical split, resulting in the establishment of six new publicly listed companies that are autonomous and sector-focused entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Base Metals.
“Vedanta, being one of the largest group restructurings in India, involved an interplay of key issues involving government approvals, addressing minority shareholder interests and assuring creditors on continuity of financial security, all of which required drawing a measured balance which had to be reflected in the deal advice and execution,” said lead partner Shuva Mandal.
“The restructuring was put together in a relatively short time frame keeping shareholder and other stakeholder interests at the forefront of all issues.”
Partners Mandal and Arka Banerjee led the Anagram team, including senior associate Sanskriti Singh and associates Vidhisha Ambade, Ashana Shah and Averal Sibal.
Hindustan Zinc (a Vedanta subsidiary) announced a thorough corporate structure review with plans to establish distinct legal entities for its zinc, lead, silver and recycling businesses.
The demerger of Vedanta’s corporate structure into sector-focused independent businesses aims to simplify operations and create direct investment opportunities for global investors.
Each of the newly formed autonomous entities is now equipped with independent listed equity, autonomous management structures, distinctive capital allocation frameworks and niche strategies.
The move aligns with the broader context to meet India’s escalating demands for each sector, with a view to increasing national self-sufficiency by diminishing reliance on imports.