Billionaire Anil Agarwal’s Vedanta shares just added about $400 million to the family kitty after the decision to delist the company

• Billionaire Anil Agarwal announced to buyout public shares of his Vedanta Ltd on May 12.
• Anil Agarwal has lost more than half his wealth in last nine years. However, his decision to delist Vedanta had the investors cheering with the stock surging 9.99% as trade opened on Wednesday.
• Agarwal and his family member own 50.14% stake in Vedanta. And as the shares surged 10%, adding about $400 million to their net worth.

Anil Agarwal has lost more than half his wealth in last nine years. However, his decision to delist Vedanta had the investors cheering with the stock surging 9.99% as trade opened on Wednesday. And the promoters, including Agarwal, hold half of all the Vedanta shares.

Vedanta shareholders will get ₹87.5 per ⁠— a 9.9% premium to Monday’s closing price of ₹79, but lesser than Tuesday’s closing price of ₹89.30.

The 66-year old commodities moghul Agarwal is the 648th richest person in the world. According to Forbes, he was worth $6.4 billion in March 2011 but now he owns $3.1 billion.

However, Agarwal and his family member own 50.14% stake in Vedanta. And as the shares surged 10%, it added nearly $400 million to their networth.

From a tiny scrap business to $4.4 billion Vedanta

Agarwal grew up in the narrow lanes of Goria Toli in Patna. As a child, he was ambitious but didn’t want to spend time studying. He started helping his father in trading aluminium conductors in the city. However, he wanted to do something of his own. It was his history teacher Shiv Shankar who suggested he drop out of school and start his business.

In 1976, Agarwal, 20, went to Mumbai and started a tiny business of scrap metal — Vedanta Resources. He also bought Shamsher Sterling Corporation, a cable company in the same year — which was later renamed to Sterlite Industries.


The Big Break

Shamsher Sterling was the big break Agarwal was waiting for from years. It went public in 1988 and raised a whopping ₹4.06 crore. Sterlite's IPO followed a series of acquisitions. Agarwal’s expansion plans were eerily similar to Dhirubhai Ambani’s plan. Both of them were the first to realise the high returns from cheap assets in India.

His expansion plan grew bigger with each purchase. In 2011, he bought 58.5% in Cairn India — a company that produced oil and gas — for $8.67 billion. The acquisition of Cairn India made him worth ₹1,67,000 crore — richer than Mukesh Ambani’s wealth at that time (₹1,45,275 crore).

In 38 years, Vedanta went on to become a multibillion dollar company with $15 billion revenues. It expanded operations in Zambia as well as Australia.

Today, Vedanta Resources — trades everything from metal, mining power to oil — has a market capitalization of $4.4 billion.

Privatisation: The game changer

The game changer for Agarwal came in when, in 1991, Finance Minister Manmohan Singh liberalized its economy. The Indian government announced disinvestment of ₹3,038 in 31 selected public sector units. Agarwal placed his ₹550 crore bets on Bharat Aluminium.

Agarwar told ABP news, since he didn’t have sufficient money to fund the bid hence he opted for a positive PR strategy soon after they placed their bet.

“We wanted ₹550 crore and we told banks we will take loans on a first come first serve basis. And we got ₹2000 crore bids from the banks.”

And there was no stopping from then. He moved to London to get a ₹100 million market cap for Vedanta. His company was the first Indian company to get listed in the London Stock Exchange.

Fifteen years into business Agarwal was betting big on privatisation. He made a firm $1-billion offer to buy 33.47% non-promoter shares of Vedanta Resources.

In 2019, Agarwal told Times Network, “I have acquired four government companies. All four have become three times (in terms of) productions and have shown tremendous capability.

Still an ordinary man

Agarwal is among India’s top self-made billionaires. but despite his growth Agarwal has faced heavy criticism from western countries because of his aggressive plans. Western corporations blamed that Agarwal grew his business internationally at the cost of the environment.

Back in 2010, the Church of England and pensions of funds from Netherlands and Norway sold their shares as it violated human rights and environment. The latest instant is the battle with several NGOs to resume mining in Goa.

Unlike other billionaires who are always in Armani suits, Agarwal keeps it simple. When he was a kid, English language scared him and now even when he is in London he finds it difficult to communicate in English.


“Though I live in London, I have not come out of Bihar, I eat with my hands, I sing local countryside music, and no matter how much I am trying to improve my English, the same accent comes out.” he told Financial Times.