Exclusive: No plan of restructuring company, Vedanta Chairman Anil Agarwal tells Anil Singhvi - this is what he said

Vedanta Limited on Tuesday said that it had dropped its restructuring plans which involved hiving off and listing three of its businesses after its board found the present structure to be “optimal”. 

Here’s what Anil Agarwal, Executive Chairman at Vedanta Resources Limited, told Zee Business’ Managing Editor, Anil Singhvi, on the same.

There are three things that the company has clarified:

1: Vedanta never committed to buying BPCL directly but may invest.

2: There will not be any merger of the parent company with Vedanta Limited

3: The capital allocation will be made with much clarity. So they can maintain full discipline

The company in November said that it would consider the hiving off and separate listing of its aluminium, iron and steel, and oil and gas businesses as standalone entities.

Vedanta’s debt-equity position stands at 0.7 per cent, which is the lowest in the world. If you look at its parent company’s debt-equity, it fluctuates around 1.2 per cent to 1.3 per cent, which is by large the lowest in a similar industry, claimed Agarwal.

The company is in a comfortable position.

The company has been contemplating because their business is huge. They are the largest producer of aluminium, steel, zinc, oil & gas, iron ore. They have been advised to take this decision.

This is why they have decided to keep all the business in the same company.

So for the next few years, Vedanta isn’t going to make any restructuring changes.

Agarwal also clarified that while Vedanta Ltd. will be managing BPCL and will charge a fee for managing it but would not buy it.

According to Agarwal, if there is a scope for investing in other PSUs, they will consider it but would not go beyond the capital allocation of Vedanta Ltd.

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