Aniket PujariShares of metal and mining major Vedanta gained over 3% in trade on Tuesday, March 18, after Chairman Anil Agarwal projected strong growth potential for its demerged entities.
Agarwal in a letter to the shareholders said that each of the four newly-demerged companies has the potential to grow into a $100 billion company, emphasizing that today the world is all about pure-play businesses.
“I envision that each of the four newly demerged companies has the potential to grow into a $100 billion company. If you look at where we are headed as a global economy and the demand for such products, these companies and their products are the need of the hour,” Agarwal said.
He also added that each of the demerged entities has the potential to grow into a Vedanta by itself, and “the time to act is now”.
“While Vedanta currently contributes close to 1.4% of India’s GDP, there is a need for many more Vedantas to step forward to realize the sector’s true potential. Our ongoing proposed demerger would help in this direction through the creation of four new natural resource-focused entities,” he claimed.
Agarwal stressed upon the strong returns that Vedanta has generated for its shareholders. Anyone who invested in Vedanta five years ago, would have seen their wealth multiplying by 4.7 times, he claimed, via capital appreciation and dividends returned.
Vedanta Demerger
In February, 99.5% of shareholders and creditors voted in favour of demerging Vedanta into five businesses, in a bid to simplify structure, reduce debt and unlock value.
Post demerger, every Vedanta shareholder – both retail and institutional – will receive one new share in each of the newly demerged companies.
“We are a high-growth business and the demand for our critical minerals and transition metals continues to grow at a double-digit rate, one of the highest in the world,” Agarwal said.
Vedanta Share Price Trend
Following Anil Agarwal‘s address to the shareholders, shares of Vedanta jumped 3% to hit the day’s high of ₹460.85 apiece on the BSE.
In the last one year, the large-cap metals company has surged 68.60%, taking its market capitalisation to ₹1.78 lakh crore.
Despite the ongoing selloff in the Indian stock market in 2025, the company shares have held their ground, rising 3% on a year-to-date (YTD) Basis as against an over 4% decline in the BSE barometer Sensex.
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