Vedanta shareholders get an important message from Chairman Anil Agarwal; Here's what he said

Vedanta Ltd.'s four demerged entities will begin trading as separate companies by next month, the conglomerate's chairman Anil Agarwal told CNBC-TV18 on Tuesday, May 26.

Shares of the currently listed Vedanta Ltd. have been trading adjusted for the demerger of the other four entities, namely Vedanta Aluminum Metal Ltd., Talwandi Sabo Power Ltd. to be renamed Vedanta Power Ltd., Malco Energy Ltd. to be renamed Vedanta Oil & Gas Ltd. and Vedanta Iron and Steel Ltd., since May 1, which the board had approved as its record date.

Five Independent Listed Entities Soon

The Vedanta Group Chairman told CNBC-TV18 in an exclusive conversation that the companies will have very strong managements individually. He said this is "what we require in natural resources in India, and we will proceed in that direction."

The $10 Billion EBITDA Target

Agarwal also said the combined EBITDA of all its entities is expected to reach $10 billion in the coming years, without giving a specific timeline. The company has also planned a capex of $20 billion in the future.

"We have very good internal profit generation in the company. Internal accruals are very good. We might have to take some equity, some debt, but $20 billion investment will be there. And we will probably increase our production by two-and-a-half times of everything," he added.

Privatising PSUs

Vedanta would consider PSU units if offered under the divestment route by the government, according to the septuagenarian. He said the company has demonstrated its ability turn around PSUs such as BALCO and Hindustan Zinc Ltd., the latter in which it holds majority stake and is now the promoter.

Agarwal added that he remains bullish on copper, aluminum and oil and gas. He said all three are very critical.

"And the fourth, we can be the largest producer of arms and ammunition. The sort of factories we have is massive. If they can be modernised and privatised, we will be the largest producer of today's digital technology. But the Parliament has to be together. Everybody has to be together. One goal to make sure we produce arms and ammunition here and we run whatever strength we have. We leverage that 100%," he added.

Shares of Vedanta ended 3.7% higher on Tuesday at ₹344.8. The stock has surged nearly 30% so far this month, which has turned out to be the best that the stock has had since April 2024.

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