Vedanta to carve out real estate, create sixth listed company
Mumbai: Vedanta Ltd said on Thursday it will demerge its newly formed real estate company into a separately listed entity, creating a sixth listed group
Mumbai: Vedanta Ltd said on Thursday it will demerge its newly formed real estate company into a separately listed entity, creating a sixth listed group company. The billionaire Anil Agarwal-led company made the announcement just weeks after it completed a lengthy restructuring into five separately listed companies. “This is yet another exciting announcement from Vedanta. After the recent success of the five-way demerger creating ‘pure-play’ entities across oil and gas, aluminium, power and steel, we plan to demerge the surplus real estate assets into an independent ‘pure-play’ company to unlock significant value for the stakeholders,” Agarwal said in a statement. Shareholders of Vedanta Ltd will get a share of Vedanta Property Platforms Ltd for every 20 shares in Vedanta Ltd. Shares of Vedanta Ltd closed 1.17% higher on Wednesday at ₹267.6 compared to a 0.35% rise in the benchmark Sensex. Quick answers to key questions • 5 QUESTIONS 1 What is Vedanta's plan for its real estate business? ⌵ Vedanta plans to demerge its real estate assets into a newly formed company called Vedanta Property Platforms Ltd to unlock significant value for stakeholders. 2 Why is Vedanta demerging its real estate assets? ⌵ The demerger aims to create a 'pure-play' real estate entity with independent management and operations, allowing focus and unlockment of value from the surplus real estate assets.
3 How will Vedanta shareholders benefit from the real estate demerger? ⌵ For every 20 shares of Vedanta Ltd, shareholders will receive 1 share of Vedanta Property Platforms Ltd, giving them a stake in the new real estate company. 4 What kind of assets will Vedanta Property Platforms Ltd manage? ⌵ The new real estate company will manage 14 land parcels and eight residential and office spaces across various states in India, including Maharashtra and Tamil Nadu. 5 When did Vedanta announce the demerger of its real estate business? ⌵ Vedanta announced its decision to demerge its real estate business on July 30, shortly after completing a previous five-way corporate restructuring. Also Read | Billionaires line up for Odisha's biggest untapped bauxite block The company will inherit 14 land parcels and eight residential and office spaces across Gujarat, Maharashtra, Goa, Karnataka and Tamil Nadu. However, the assets are discrete, comprising five flats in Mumbai, two bungalows in Panjim, and several industrial land parcels. The company proposes to use these assets for uses like offices, real estate investment trusts, hotels, and residential and corporate leasing. “Vedanta is primarily a natural resources company, and separating the real estate business allows it to have its own independent management and operations,” said Suman Kumar, analyst at brokerage Philip Capital.
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