From Bihar To London: How Vedanta Gave 9276% Returns
Vedanta has delivered 9276% returns in the last 20 years with a dividend yield of 19.75%, one of the highest among any Indian company. Let us look at the journey of Vedanta, the first Indian company to be listed on the London Stock Exchange.
💸 Stock: Vedanta Ltd.
💸 NSE: $VEDL
Vedanta Resources Ltd. is now valued at over ₹1,40,000 crores. But in 1976, Anil Agarwal had to struggle to pull together ₹16 lakhs to purchase his first company.
🛖 Humble Beginnings
Hailing from a small village in Bihar, the first-generation entrepreneur’s commitment and self-belief enabled him to take over an underperforming business and turn it around, to the extent that it became the first Indian company to be listed on the London Stock Exchange.
Agarwal started a business which collected metal from cable companies across India and sold it in Mumbai in the 1970s. He decided to take advantage of the Shamsher Sterling Cable Company’s bankruptcy in 1976 to expand.
The only issue was that Agarwal had no idea how to raise the ₹16 lakhs required to buy the failing business. He was ultimately able to get the cash through multiple personal and professional loans and assistance from mentors like the attorney, Nitin Kantawala and Syndicate Bank manager, Dinkar Pai.
💡A Brilliant Business Move
The acquisition of Shamsher Sterling by Agarwal turned out to be one of several brilliant business moves. Agarwal rapidly expanded his company by venturing into mining and production of raw commodities like copper, aluminium and zinc. He revived a number of struggling businesses, including Madras Aluminium, the Bharat Aluminium Company and Hindustan Zinc Limited.
⭐ The Rebranding
In order for Vedanta Resources to become the first publicly traded Indian firm on the London Stock Exchange, Sterling was rebranded as Vedanta Resources in 2003. This step was taken so that it could get access to foreign finance.
Anil Agarwal gives credit for his success to his parents and his wife, who always stood by him and supported him in his ventures. It was his dream to expand the horizons of his company and get it listed on the LSE. He didn’t have much when he went to London but had conviction in his endeavour and his parents’ blessings.
🕯️A True Inspiration
Agarwal’s story is inspirational for young and aspiring entrepreneurs. His words of wisdom when he addressed the students at Oxford Union in London went like this:
“Be fearless because luck favours the brave, be humble because growth happens when you look inwards and be flexible because there is no substitute for hard work. The amalgamation of youth and tech will lead the world to a newer order.”