Vedanta to split into five companies for growth

Several companies have announced major demergers to enhance their focus and increase shareholder value. These changes come amid high market volatility but a recent positive trend in stock prices. Vedanta is one of the companies undergoing significant changes. On September 29, 2023, its board approved a plan to split its diverse businesses into five separate publicly listed companies. This includes sectors like aluminium, oil and gas, power, steel, and ferrous materials. Shareholders will receive one share of each new company for every share they hold in Vedanta. Tata Motors has also announced a demerger. On March 4, 2024, the board decided to separate its Commercial Vehicle business into a new company called TMLCV. The remaining businesses, including passenger and electric vehicles, will operate under a new name, TMPV. Shareholders will maintain the same shareholding in both entities after the split. Aditya Birla Fashion and Retail plans to demerge as well. On April 19, 2024, the board approved a split of its Madura Fashion & Lifestyle Business into a new entity named Aditya Birla Lifestyle Brands Limited. Shareholders will receive one share of the new company for every share they hold in Aditya Birla Fashion. Siemens is making similar moves. On May 14, 2024, it approved the creation of Siemens Energy India Limited, focusing on the energy sector. Shareholders will get shares in this new company for each share they own in Siemens. Lastly, Hindustan Unilever’s board approved the demerger of its subsidiary, Kwality Wall’s (India) Ltd, into its own standalone entity. This decision, made on January 22, 2025, aims to improve efficiency and allow both businesses to grow independently. Shareholders will receive one share of Kwality Wall’s for each share they hold in Hindustan Unilever.