Mumbai: The long legal wait around Vedanta’s demerger has finally ended. The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Vedanta Limited’s demerger scheme, giving a major boost to the company and its shareholders. With this approval, Vedanta can now move ahead with plans to split its businesses into separate listed companies.
All key approvals from shareholders, creditors, and SEBI had already been received earlier. The NCLT clearance was the last major regulatory hurdle. After the news, Vedanta shares moved higher and touched an all-time high, rising from a previous close of Rs 549 to around Rs 572 during the session.
What exactly did NCLT approve?
The Mumbai NCLT approved the demerger under Sections 230–232 of the Companies Act. This approval clears the legal uncertainty that had delayed the process multiple times.
In a statement, Vedanta said the NCLT’s decision is a major milestone in the company’s transformation journey. The company added that the demerger will help create focused, sector-specific companies with clear strategies and independent capital structures. Vedanta believes this will support long-term value creation for shareholders.
Strong backing from shareholders and regulators
Earlier, 99.99 percent of shareholders voted in favour of the demerger. Both secured and unsecured creditors also approved the plan with nearly full support. SEBI did not raise any objections on merit. With NCLT’s approval now in place, the company can begin the implementation process.
What will change after the demerger?
Vedanta plans to separate its major businesses into individual listed entities. These include aluminium, oil and gas, power, steel and ferrous materials, and base metals. Shareholders will receive shares in these new companies in exchange for their existing Vedanta shares. The company will announce the exact swap ratio and record date later.
Why was the demerger delayed?
The process was delayed due to concerns around debt disclosures at power subsidiary Talwandi Sabo Power and objections raised by the petroleum ministry related to oil and gas assets. The case also went through multiple hearings at NCLT and NCLAT before reaching final approval.
What it means for investors?
The demerger is expected to unlock value, improve management focus, and lead to better valuations over time. Investors should now watch for details on implementation, listing timelines, and swap ratios.
