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The Vedanta Limited Board has greenlit a pure-play, asset-owner business model that will result in six distinct listed companies.
Vedanta shares up 2% following the SC relief.
Vedanta Demerger Plan: Vedanta Ltd received a big relaxation on Thursday when the National Company Law Appellate Tribunal (NCLAT) granted an interim stay on a previous ruling by the National Company Law Tribunal (NCLT) that had rejected its demerger scheme.
In a regulatory filing, Vedanta Ltd announced that the appellate tribunal’s order temporarily halts the NCLT’s March 4 decision “to the extent it relates to the rejection of the Scheme,” under certain conditions set by the NCLAT.
Shares of Vedanta Ltd up 2% post the NCLAT interim relief.
Company’s Commitment to Reorganisation
Vedanta reiterated its dedication to its strategic reorganisation plan, aiming to unlock long-term value for all stakeholders. The mining-to-metals conglomerate is working on restructuring its extensive business into independent verticals, planning to spin off its aluminium, oil & gas, power, and steel divisions into separate listed entities. These operations are currently managed under Vedanta Ltd, the Indian subsidiary of London-based Vedanta Resources.
Board Approval And Future Plans
The Vedanta Limited Board has greenlit a pure-play, asset-owner business model that will result in six distinct listed companies:
• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Base Metals
• Vedanta Limited
Demerger Timeline and Shareholder Benefits
Due to pending regulatory approvals and the NCLT’s decision, the company had extended its demerger deadline from March 31 to September 30, 2025. Under the demerger plan, Vedanta shareholders will receive one share in each of the newly formed companies for every share they currently hold, with the overall shareholding structure remaining unchanged.
Rationale for Demerger
- Simplifies Vedanta’s corporate structure with sector-focused independent businesses.
- Offers global investors, including sovereign wealth funds, retail investors, and strategic investors, direct investment opportunities in dedicated pure-play companies aligned with India’s growth story through Vedanta’s world-class assets.
- With listed equity and independent management teams, these demergers provide a platform for individual units to pursue their strategic agendas more freely and align better with customers, investment cycles, and end markets.
- Allows the market to better value Vedanta’s technological advancements, environmental stewardship, and robust growth within its family of companies.
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