Vedanta Demerger Plan Gets NCLT Nod; Shares Rise 3.5%

The National Company Law Tribunal (NCLT) on Tuesday cleared Vedanta Ltd’s demerger plan, bringing an end to months of delays caused by objections raised by the Ministry of Petroleum and Natural Gas, changes to the original proposal, and external objections.

Vedanta’s board had originally approved the demerger on September 29, 2023, proposing to split the group into six independent entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. The plan was later revised to retain the base metals business within the parent company.

Under the revised structure, Vedanta will now form four group companies in addition to the parent Vedanta Ltd. These are Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel.

Following the NCLT Mumbai bench’s order, Vedanta shares rose as much as 4% on the BSE and ended the session 3.5% higher at ₹569.35 per share.

In an exchange filing at 4.30 PM, the company said it is awaiting a certified copy of the order.

Delayed Demerger

The approval process had been held up largely due to concerns flagged by the petroleum ministry, which warned that the proposed restructuring could affect its ability to recover outstanding dues from Vedanta’s oil and gas operations.

The tribunal held the final hearing on the proposal on November 12. Earlier, the Mumbai bench had adjourned hearings multiple times, directing Vedanta and the petroleum ministry to submit written arguments. Proceedings were also deferred after the Securities and Exchange Board of India had not completed its review of the proposal.

The petroleum ministry had sought additional disclosures related to Vedanta’s oil and gas assets, including details of the RJ exploration block, the treatment of exploration blocks as company assets, and loans raised against those assets, as part of its objections to the scheme.

Separately, Vedanta’s power business had faced contractual and payment-related disputes with SEPCO. However, the Chinese engineering and construction firm has since withdrawn all arbitration claims linked to that unit.

The demerger aims to simplify operations, sharpen management focus, and unlock value for shareholders. In March 2025, Vedanta extended the deadline for completing the exercise to September 30, 2025, citing pending approvals from the NCLT and other authorities.