Vedanta demerger: NCLAT stays NCLT order rejecting business split; stock sees relief rally

Vedanta demerger: In a major relief for Anil Agarwal's Vedanta Limited, the National Company Law Appellate Tribunal (NCLAT) has granted an interim stay on an earlier order passed by the National Company Law Tribunal (NCLT) rejecting the mining major's demerger scheme.

Following the announcement by the company, Vedanta share price witnessed a relief rally, rising over 1% from its day's low in an otherwise weak market.

Vedanta stock jumped to the day's high of ₹450.90, a rise of 1.32% from the day's low of ₹445. As of 1 pm, the mining company's stock was 0.94% higher at ₹450.85.

Why did NCLT put Vedanta demerger on hold?

The NCLT had dismissed a demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) at an initial stage in a setback for the five-way spinoff of its parent Vedanta.

NCLT's Mumbai bench had ruled that TSPL's proposed demerger scheme lacked necessary disclosures, mainly about its debt obligations.

The decision came after China-based SEPCO Electric Power Construction Corporation raised objections to the demerger, saying that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors.

The NCLT order said, “This has been done deliberately to defeat SEPCO's rights.”

NCLAT has fixed the date for a detailed hearing on August 4, 2025. “… in the meanwhile, the impugned order, so far as it only relates to rejection of the scheme is hereby stayed till the next date of hearing upon the appellant giving a Bank Guarantee to the tune of ₹1,245 crores to protect the interest of the Respondent herein, within two weeks from today,” NCLAT order stated.

Vedanta demerger details

Vedanta is in the process of restructuring its sprawling business into independent verticals, with plans to demerge its aluminium, oil & gas, power and iron & steel businesses into separate entities.

Keeping in view the setback following NCLT order, Vedanta has extended the deadline to complete its planned demerger from March 31 to September 30.

"Vedanta remains committed to its strategic reorganisation plan and continues to work towards unlocking long-term value for all stakeholders," the company said in a filing today.

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