Vedanta Ltd has received approval from the National Company Law Tribunal (NCLT), Mumbai bench, to proceed with its long planned demerger, allowing the oil-to-metals conglomerate to split into five separate listed entities, according to a Bloomberg report.
A company spokesperson confirmed that Vedanta will now move ahead with the necessary steps to implement the 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,” the spokesperson said.
The company aims to complete the demerger by March 31, 2026, subject to regulatory and procedural clearances.
Five New Verticals to Be Created
Under the approved plan, Vedanta will be reorganised into the following entities:
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Iron and Steel
- Vedanta Limited, which will house the group’s zinc and silver businesses, including the world’s second-largest integrated zinc producer and the third-largest silver producer
The move is aimed at unlocking value by allowing each business to operate independently with a sharper strategic focus and tailored capital allocation.
Shareholder Structure
As per the demerger scheme, every Vedanta shareholder will receive one additional share in each of the four newly demerged companies upon completion of the process. This ensures that existing investors retain proportional ownership across all businesses post restructuring.
Long-Planned Restructuring
The demerger plan was first announced in 2023, following Vedanta’s unsuccessful attempt to go private in 2020. Earlier this year, in February, the Anil Agarwal-led group secured approval for the demerger from both shareholders and lenders, clearing a major regulatory hurdle.
The NCLT approval now brings Vedanta closer to executing one of the largest corporate restructurings in India’s metals and mining sector, a move closely watched by investors and lenders.
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