Vedanta Demerger: Anil Agarwal-led conglomerate extends demerger deadline to THIS date over pending approvals

Vedanta Demerger: Vedanta Ltd. has extended the deadline to complete its planned demerger from March 31 to September 30, citing pending approvals from the National Company Law Tribunal (NCLT) and other government authorities, the company informed in an exchange filing on Friday, March 28.

According to billionaire industrialist Anil Agarwal-led metals-to-mining conglomerate, the decision was made under Clause 39.7 of the demerger scheme, which allows the board and the boards of its resulting entities to extend the implementation timeline if regulatory approvals are delayed.

Also Read: Vedanta, Tata Steel, Hindalco— Why are metal stocks rising? What should you buy from the sector?

Vedanta Demerger deadline extended; here's why

“Given that the conditions precedent in the Scheme, including approval of the NCLT and approvals from certain government authorities, are in the process of being completed, the Board and the resulting companies, in the exercise of their powers under clause 39.7 of the Scheme have decided to extend the timeline for fulfilment of the conditions precedent from March 31 to September 30, 2025,” said Vedanta in a regulatory filing to the exchanges.

Earlier this month, Mint reported that NCLT dismissed the demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) at an initial state in a setback for the five-way spinoff of its parent Vedanta Ltd. The tribunal’s Mumbai bench, comprising judicial member Reeta Kohli and technical member Madhu Sinha, ruled that TSPL’s proposed demerger scheme of arrangement lacked the necessary disclosures, specifically regarding the company’s debt obligations.

SEPCO Electric Power Construction Corporation (Sepco), a TSPL creditor, objected to the scheme, claiming that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. The tribunal deemed it non-compliant with legal requirements.

Also Read: Vedanta Demerger: Shareholders approve the proposed 5-unit plan— Key things to know

Vedanta Demerger Plan and Rationale

On February 18, 2025, Vedanta convened meetings with its shareholders, secured creditors, and unsecured creditors, all of whom supported the restructuring plan. The regulatory filing dated February 20, confirmed the approvals, marking a major milestone in Vedanta’s strategic transformation.

The five newly formed entities post-demerger will include:

Vedanta Aluminium – One of the largest aluminum producers globally.

Vedanta Oil & Gas – India’s leading private-sector crude oil producer.

Vedanta Power – A major player in the power generation sector.

Vedanta Iron and Steel – Specializing in the ferrous products industry.

Vedanta Ltd. – Continuing as the parent entity, housing the silver and zinc businesses while incubating emerging ventures, including technology.

Also Read: Vedanta Q3 result: PAT jumps 70% YoY; company records highest ever 3rd quarter EBITDA of ₹11,284 crore

Existing shareholders of Vedanta will receive shares in each of the five new companies. The move aims to give investors the flexibility to hold sector-specific investments based on their market strategies and risk appetite. Over time, the independent units will likely attract investor groups, fostering deep collaborations and unlocking sector-specific growth opportunities.

Shares of Vedanta rallied 18 per cent in one month, 4.15 per cent year-to-date (YTD), and over 61 per cent in one year. On Friday, shares of Vedanta settled 1.70 per cent lower at ₹464.10 apiece on the BSE. According to stock exchange data, the conglomerate commands a market cap of ₹1,81,481.11 crore.

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