Vedanta Ltd. witnessed a significant resurgence in its shares, with a nearly 3 percent increase in early trading on Friday. This remarkable rebound follows a recent dip that had seen the stock reach a 14-month low just a couple of days ago.
At 10:45 am, Vedanta’s shares were actively trading at Rs 213.95 on the National Stock Exchange. This impressive recovery comes in response to Moody’s recent downgrade of its parent company, Vedanta Resources, which had initially caused a sharp decline in Vedanta’s stock.
Investor confidence has been rekindled by reports suggesting that the company is contemplating a substantial strategic move – the division of its business into four distinct units.
While an official statement regarding the demerger is still pending, these reports have sparked optimism among investors on Dalal Street. According to insider information, Vedanta is planning to create separate entities for its metals, power, aluminum, and oil and gas businesses.
This strategic maneuver aims to diversify Vedanta’s business portfolio and unlock enhanced valuations for each individual unit. It appears that Vedanta Ltd. is strategically repositioning itself to adopt a more focused approach within each of its core sectors.
Notably, just a month ago, Vedanta’s Chairman, Anil Agarwal, hinted at the possibility of such a demerger for the company’s various businesses.
Agarwal’s vision is to provide investors with the opportunity to hold shares in distinct and diverse entities, thereby opening up new avenues for investment across different sectors