The share price of Vedanta is in the spotlight. This comes after the National Company Law Tribunal (NCLT) in Mumbai approved the company’s proposed demerger plan. The decision allows Vedanta to split its India operations into five separate listed entities.
Let’s take a look at the key factors to watch out for –
Vedanta Demerger: NCLT gives the nod
The NCLT’s Mumbai bench approved Vedanta’s scheme of demerger, stating that the plan is “fair and reasonable, is not violative of any provision of law, and is not contrary to public policy.” The tribunal emphasised that all statutory requirements have been met. The court also rejected the Ministry of Petroleum and Natural Gas’s concerns over alleged misrepresentation of hydrocarbon assets and incomplete disclosure of liabilities.
Vedanta Demerger: What are the key conditions for implementation
Although the demerger has been approved, the company still needs to complete certain conditions before the scheme becomes effective, or within two months of the order.
This includes releasing charges over fixed assets. Moreover, the company must also update this information with the Registrar of Companies.
Furthermore, tribunal clarified that its approval does not prevent ongoing or future litigation or regulatory actions. It also does not bar tax proceedings or arbitration.
Vedanta Demerger: Which are the new entities?
Vedanta will continue as the parent entity and retain its zinc and silver business through Hindustan Zinc after the demerger.
Meanwhile, the remaining businesses will be listed as separate companies. These includes – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron and Steel.
Furthermore, the shareholders of Vedanta will receive one share in each of the four newly created entities. This ensures that they maintain proportional ownership across the group.
Vedanta Demerger: Revised structure
Originally, Vedanta planned to create six independent entities, including a base metals unit. However, in the revised scheme, the base metals business remains with the parent company. The parent will also act as an incubator for new ventures.
This structure aims to streamline operations, allowing each listed company to focus on its respective sector.
Vedanta stock performance
Vedanta shares delivered a return of 10% in the past month. For 2025 so far, the stock has recorded a 29% change. Over the past 52 weeks, the stock has traded between a high of Rs 572.90 and a low of Rs 363.