Shares of Vedanta, India’s largest diversified resources company, rose 2% ₹219.40 per share during the early trading session on Wednesday. This increase came after the company filed a stock exchange filing on Tuesday announcing the appointment of Ajay Goel as the company’s new Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) effective October 30, 2023 and Sonal Shrivastava replaced. who has resigned from his position as CFO and KMP of the Company effective at the close of business on October 24, 2023 for personal reasons.
Goel left his previous role at Vedanta earlier this year to join education startup BYJU’s. However, he resigned six months after joining.
“As part of Vedanta’s structured recruitment program called ‘Gharwapsi’, Mr. Ajay Goel is rejoining the company. Ajay was previously associated with Vedanta as the company’s acting CFO and KMP from October 23, 2021 to April 9, 2023. In his previous role at Vedanta, Ajay’s leadership acumen contributed significantly in driving business performance, managing the company’s financial affairs and to lead the finance function. He was also instrumental in the successful handling of regulatory approvals, investment matters, capital allocation, etc. Investor relations and important M&A-related matters,” the company said in a stock exchange filing.
On October 3, Vedanta released its business update for the September quarter. The company reported a 2% increase in its total aluminum production to 5,94,000 tonnes in the second quarter of fiscal 2024. The company’s total aluminum production stood at 5,84,000 tonnes during July-September of the last financial year.
Mined metal production at Zinc India declined 1% to 2,52,000 tonnes compared to over 2,55,000 tonnes in the year-ago period. At Zinc International, Vedanta said total mined metal production fell 10% year-on-year from 74,000 tonnes to 66,000 tonnes.
The company’s total production in the second quarter of fiscal 2024 was 66,000 tons, down 10% year-on-year and down 3% quarter-over-quarter, largely due to lower tons processed. Salable steel production rose 17% year-on-year to 3,78,000 tonnes due to improved operational efficiency and higher production capacity following de-bottlenecking in FY23, the company said in a stock exchange filing.
Meanwhile, the company last month announced a complete restructuring that included splitting its diversified business into six separate publicly traded companies. These companies include Vedanta Aluminum, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited.
The split is planned to be a simple vertical split. For each share of Vedanta Limited, shareholders will also receive one share from each of the five newly listed companies. The entire process is expected to be completed by September FY25.
Global brokerage Phillip Capital said the demerger would provide the group with greater flexibility, unlock value for investors by allowing them to choose specific commodities for investment, and give the parent company the ability to partially or fully liquidate assets to manage debt repayments.
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