Vedanta Limited Approves Vertical Split to Demerge Real Estate Business
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In a strategic move to unlock the value of its surplus non-core assets, mining and metals conglomerate Vedanta Limited has announced the demerger of its real estate business. The division will be spun off into a newly formed, independent, and separately listed company named Vedanta Property Platforms Limited (VPPL). This announcement follows Vedanta’s successful five-way demerger, which created distinct entities for oil and gas, aluminium, power, and steel.
According to Vedanta Group Chairman Anil Agarwal, housing these properties under a dedicated “pure-play” real estate platform will allow for focused management, improved operational transparency, and more productive deployment of the assets.
The Details of the Demerger
The board of directors approved the draft scheme of arrangement to transfer the company's real estate undertaking to VPPL on a going-concern basis.
Here are the key details for investors:
Share Entitlement Ratio: The demerger will be executed as a vertical split. For every 20 shares held in Vedanta Limited, shareholders will be issued 1 share of the new entity, VPPL.
Shareholding Pattern: The company has explicitly clarified that there will be no change in the overall shareholding pattern post-demerger.
What is inside the VPPL Portfolio?
VPPL's surplus real estate assets have been accumulated over the years through various acquisitions and have historically been used with limited focus.
The initial portfolio will include 22 discrete assets spread across Maharashtra, Goa, Tamil Nadu, Gujarat, and Karnataka, comprising:
Approximately 2,264 acres of industrial land parcels spread across 14 sites.
Around 53,185 square feet of residential and commercial properties, which include flats, buildings, and bungalows across 8 units. (For example, this includes specific assets like five flats in Mumbai and two bungalows in Panjim).
Looking ahead, VPPL plans to explore developing these assets into various ventures, including industrial and manufacturing parks, IT/ITES campuses, data centres, logistics and warehousing parks, and agro-industrial parks. VPPL may also evaluate schemes to acquire real estate undertakings from other Vedanta group companies.
Strong Q1 FY27 Financial Performance
The demerger announcement coincided with the release of Vedanta’s strong financial results for the first quarter of FY27 (ended June 30, 2026).
Net Profit: Consolidated net profit surged a massive 71.8% year-on-year to ₹5,473 crore, up from ₹3,185 crore in the same period last year.
Revenue: Revenue from operations rose robustly by 53.6% to ₹24,205 crore. This growth was driven by a combination of higher global metal prices, increased production volumes, strong sales, and a weaker rupee.
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