Metals and mining group Vedanta will announce the contours of a proposal to spin off key businesses into separate listed companies by March-end, chairman Anil Agarwal said as he looks to simplify and streamline the corporate structure to create value.

While the zinc business is already housed in a listed subsidiary, the plan is to demerge the aluminum, iron and steel, and oil and gas businesses into standalone listed entities.

This will unlock value for all stakeholders as well as create businesses that are positioned better to capitalise on their distinct market positions and deliver long-term growth and enable strategic partnerships, he told PTI.

It will also help tailor capital structure and capital allocation policies based on business-specific dynamics as also create distinct investment profiles to attract deeper and broader investor bases.

“It (demerger) is a natural thing to do. Market is very good and production (at different divisions of Vedanta) is going well. And so we think having separate companies will create valuation,” he said. “I think, maybe in a month and a half, sometime before March-end we will announce the full (contours).”

Mumbai-listed Vedanta Ltd had in November last year announced that its board of directors had formed a sub-committee to evaluate a potential spinoff of its aluminum, iron and steel, and oil and gas businesses into separate listed companies.

Following the sub-committee’s evaluation, the board could also consider other alternatives such as strategic partnerships that would unlock value in the businesses for its shareholders.

The spinoff will result in three new listed entities with a shareholding mirroring that of Vedanta Ltd.

After this, London-based parent Vedanta Resources group will comprise five listed entities. Four of them — Vedanta Ltd and the three newly listed companies — will have the same shareholding. The group’s listed zinc subsidiary, Hindustan Zinc Limited, will continue to be 64.9 per cent owned by Vedanta Ltd.

The plan under evaluation is the same as what Adani Group did in 2015 — creating separate listed entities for power, mining, gas and transmission businesses.