Good news for Vedanta: the National Company Law Tribunal (NCLT) has approved the demerger of the company. The approved demerger scheme would split the mining and metal conglomerate into separate sector-focused entities. The share price of Vedanata shot up to a new 52-week high on the news.
The decision of NCLT’s Mumbai bench came in favour of Vedanta. The government had earlier claimed that Vedanta has pending claims of 16,700 crore, and a demerger would risk these pending claims.
Vedanta hails NCLT decision
Commenting on the NCLT decision, Vedanta Spokesperson said, “Vedanta welcomes the order pronounced today by the Hon’ble National Company Law Tribunal sanctioning the company’s demerger scheme. The approval marks a key milestone in Vedanta’s transformation into focused, sector-leading companies with clear strategic mandates and dedicated capital structures.”
According to the Vedanta spokesperson, “The Company will now proceed with the necessary steps to implement the scheme.”
Vedanta’s demerger plan details
The NCLT Mumbai’s judgment on the Vedanta demerger scheme pertains to the demerger of four companies within the Vedanta Group. These include Vedanta Iron and Steel, Vedanta Aluminium, Malco Energy and Talwandi Sabo Power.
According to the Vedanta restructuring plan of 2023, the company aims to divide its Indian business into five separate entities, each focused on a specific business segment of the company. The restructure planned is named Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Iron and Steel and Vedanta Ltd. The Vedanta Ltd will operate the company’s zinc and silver businesses through Hindustan Zinc and also explore the company’s new ventures.
Vedanta share price
The Vedanta stock surged on the back of the news. The share price rallied to fresh 52-week highs and gained as much as 4% intra-day.