Tue Dec 17 12:40:00 UTC 2024: ## Major Indian Companies Announce Demergers, Restructuring Plans

**Mumbai, India – December 3, 2024** – Several prominent Indian companies are undergoing significant restructuring through demergers, creating separate listed entities for various business units. According to JM Financial, ITC Ltd, Vedanta Ltd, Tata Motors Ltd, Aditya Birla Fashion and Retail Ltd (ABFRL), and Siemens Ltd are among those poised for major changes following board approvals and stock exchange clearances.

**ITC’s Hotel Business to Demerge:** ITC Ltd’s demerger of its hotel business, approved by the NCLT on October 4th, 2024, will be effective January 1st, 2025. Existing ITC shareholders will receive one share in the new ITC Hotels entity for every ten ITC shares held. JM Financial estimates the demerged hotel business to be valued at Rs 25 per share.

**Tata Motors Splits into Two Listed Entities:** Tata Motors is splitting its commercial vehicle and passenger vehicle businesses into two separate listed companies. Shareholders will receive a one-to-one share ratio in both entities. The process is expected to take 4-6 months pending regulatory approvals.

**Vedanta Creates Multiple Independent Companies:** Vedanta Ltd plans to demerge its various business units (aluminum, oil & gas, power, steel, and base metals) into five separate listed companies. Existing shareholders will receive one share in each of the new entities for every Vedanta share they hold. The company has already received stock exchange approvals.

**ABFRL Separates Madura Fashion Business:** Aditya Birla Fashion and Retail Ltd (ABFRL) is demerging its Madura Fashion & Lifestyle business into a new listed entity, ABLBL. Shareholders will receive a one-to-one share ratio. The company has received necessary stock exchange and NCLT approvals.

**Siemens Energy India to Become Independent:** Siemens Ltd’s demerger of Siemens Energy India Limited (SEIL) has received creditor and shareholder approvals, as well as stock exchange clearances. Shareholders will receive one SEIL share for each Siemens share.

While all these demergers have received key approvals, finalization is pending shareholder, creditor, and other regulatory clearances. The timelines for completion vary depending on the company and the specific regulatory requirements.

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