Vedanta Demerger: 5 Companies | Which is performing better? | CA Rachana Ranade

Rachana Ranade • 8 days ago

Original source

What This Video Is About

The video explains the demerger of Vedanta Limited into five companies: Vedanta Limited, Vedanta Aluminium, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel. The demerger resulted in a 21% jump in the combined value of the shares.

Major Ideas Discussed

  • The cost of acquisition of the demerged companies will be based on the cost of acquisition of Vedanta Limited, not considered as zero.
  • To compare the demerged companies, parameters such as revenue growth, operating profit growth, operating profit margin, market cap, and net debt should be considered.
  • The dividend policy of the demerged companies will have flexibility, with the board deciding the payout ratio, which was previously mandatory at 30%.
  • The demerged companies will have different policies, but overall, they will be aligned with the current policy thematically.

What to Watch Next

Investors should monitor the performance of the demerged companies, including their revenue growth, operating profit, and dividend payouts, to make informed investment decisions.