Vedanta share price surges over 4% as NCLT approves demerger plan

Vedanta's stock price experienced a significant increase of over 4% following the National Company Law Tribunal's (NCLT) approval of its demerger plan. Shares of Vedanta closed at ₹572.50 on the NSE, a gain of 4.2%.

The company had initially announced its plan to split the currently listed entity into six separate businesses in September 2023, but the plan was later revised.

According to a CNBC-TV18 report, Vedanta welcomed the NCLT's order sanctioning the demerger scheme. The company stated that this approval represents a crucial step in its transformation into focused, industry-leading companies. Vedanta will now move forward with the necessary actions to implement the demerger.

NCLT Decision: Key Details

On Tuesday, December 16, the National Company Law Tribunal (NCLT) gave its approval to Vedanta's demerger plan. This decision allows the metals-to-oil conglomerate to be divided into sector-specific entities focusing on aluminium, oil and gas, power, and iron and steel.

The Mumbai bench of the NCLT, consisting of Charanjeet Singh Gulati and Nilesh Sharma, stated, "The sanction to the company scheme is granted."

PTI reported that the NCLT had reserved its order after hearing arguments on November 12.

During the proceedings, the Ministry of Petroleum and Natural Gas (MoPNG) voiced concerns regarding potential financial risks arising from the demerger. The ministry also alleged misrepresentation of hydrocarbon assets and inadequate disclosure of liabilities by Vedanta.

The MoPNG requested disclosures on the alleged concealment of facts, including presenting exploration blocks as Vedanta's assets and details of loans secured using those assets. Vedanta responded by asserting that it had adhered to all applicable regulations.

Vedanta Demerger Plan: Recap

In February 2025, Vedanta secured approval from its shareholders and creditors for the demerger proposal, which would create five independent, sector-specific companies.

The demerger received overwhelming support, with 99.99% of shareholders, 99.59% of secured creditors, and 99.95% of unsecured creditors of Vedanta Limited voting in favor, according to a company filing.

Under the demerger scheme, each Vedanta shareholder will receive one additional share in each of the four newly demerged companies upon completion of the process.

The five resulting companies will be:

• Vedanta Aluminium: A major aluminium producer.
• Vedanta Oil & Gas: India's largest private-sector crude oil producer.
• Vedanta Power: A significant power generator in India.
• Vedanta Iron and Steel: A company focused on ferrous products.
• Vedanta Limited: This entity will include Hindustan Zinc, a major zinc and silver producer, and will also serve as an incubator for new businesses, including Vedanta's technology ventures.

The company has stated that the demerger will enable investors to hold separate investments in businesses with distinct characteristics and market potential. This allows investors to tailor their investments to their specific strategies and risk profiles.

Vedanta also believes the demerger will facilitate access to capital markets, unlocking value for the demerged entities.

Vedanta Limited currently manages a diverse portfolio encompassing metals, mining, oil and gas, power generation, and other emerging sectors.

With inputs from PTI.