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Todayu2019s global corporate landscape is quite uncertain, due to which companies often face challenges linked with managing diverse business verticals and diversified operations. To unlock the untapped potential and strategically tackle the challenges associated with managing diversified verticals under a single umbrella, companies often consider demerger as the most appropriate option to create more shareholder value. By separating distinct business units, demergers allow each entity to operate independently, with greater efficiency and focus.
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VEDANTA DEMERGER – THE MOST APPROPRIATE WAY TO SEPARATE BUSINESSES INTO INDEPENDENT ENTITIES
Today’s global corporate landscape is quite uncertain, due to which companies often face challenges linked with managing diverse business verticals and diversified operations. To unlock the untapped potential and strategically tackle the challenges associated with managing diversified verticals umbrella, companies demerger as the most appropriate option to create more shareholder value. By separating distinct demergers allow each entity to operate independently, with greater efficiency and focus. under often a single consider business units,
What is a Demerger? In contrast to mergers, which combine separate entities into a single company, a demerger divides a company, enabling each new entity to pursue its strategic goals while focusing on specific business verticals. The concept of demergers has been defined under the Income Tax Act, 1961, and is primarily governed by the Companies Act, 2013. source url:-https://vedantaa.news.blog/blogs-vedanta-demerger-the-most-appropriate-way-to-separate-businesses-into-independent-entities/
How Demerger Process Carried Out? The process to initiate a demerger in India primarily includes the involvement of the National Company Law Tribunal (NCLT). Besides, in case of a listed entity, the business has to adhere to the requirements prescribed by the Securities Exchange Board of India (“SEBI”). The main steps of demerger are as follows:
FINAL WORDS Hopefully, this presentation is useful for all of you. Thank you again and have a nice dayIn recent times, the corporate landscape has seen a rapid restructuring in operations with more companies looking for ways to unlock value and streamline operations. Even the major industry player, Vedanta Limited, has announced its Vedanta demerger, attracting great interest from stakeholders.