Indian miner Vedanta will not carve out a separate listed unit for its base metals business, it said on Friday, after discussing the matter with its stakeholders and lenders.

Vedanta, led by billionaire Anil Agarwal, had last year launched a sweeping overhaul to carve itself up into six separate businesses, in a move aimed at shoring up the group's financial performance.

The company will consider the base metals business demerger at a later stage, it said in an exchange filing, adding that the share entitlement ratio for the demerger of the remaining five businesses would remain unchanged.

The company had earlier said that existing businesses will be structured into six independent companies after the demerger: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.

Shareholders of the company would get one share of each of the five newly listed companies for every share held in Vedanta.

With the plan to set up the base metals entity put on hold, the shareholders of Vedanta will now get one share of each of the four proposed entities.

"Lenders believe the Scheme would be more favourable for unlocking value and overall optimal balancing of debt allocation across residual Vedanta and resulting companies if the Vedanta Base Metals undertaking is retained in residual Vedanta itself," the company said in the latest filing.

Vedanta also stressed the ongoing search for alternative avenues for restarting the copper business in Thoothukudi, Tamil Nadu, which is an integral part of the Base Metals undertaking, to be the reason behind the development.

Rating upgrade

S&P Global Ratings upgraded Vedanta Resources to "B" from "B-" after the parent company secured minimum support needed for a debt restructuring plan.

The move reduces the risk of refinancing some of its bonds and suggests an improvement in the company's capital structure.

The plan, approved earlier this week, removes a clause that would have accelerated payment of January 2027 and December 2028 bonds to April 20, 2026.

This marks S&P Global's third upgrade for Vedanta Resources this year, following a similar action by Moody's last month.