Vedanta Demerger Faces Fresh Hurdles: 5 Key Investor Concerns

Vedanta’s plan to split into 5 separate businesses has been delayed again. The National Company Law Tribunal (NCLT) deferred its hearing after both the Centre and SEBI raised objections.

The government alleged that the company may have “hidden liabilities, inflated revenue, and withheld information” in its filings.

SEBI Flags Compliance Issues

On August 13, SEBI sent a warning letter to Vedanta for making changes to its scheme of arrangement without prior approval.

Vedanta clarified that SEBI has no further objections to the scheme itself, but the company has been advised to exercise caution and ensure compliance in the future.

Company’s Clarification

A Vedanta spokesperson said the demerger is intended to create long-term value by forming sector-specific companies with independent management.

The company also told the NCLT that it will provide a corporate guarantee to the Ministry of Petroleum and Natural Gas once the scheme takes effect.

Supreme Court Setback

Vedanta’s subsidiary, Talwandi Sabo Power, recently lost a Supreme Court case regarding customs duty benefits under the Mega Power Policy.

Although some linked this to the demerger, Vedanta clarified that the judgment relates to an old contractual matter and has no impact on the demerger process.

Dividend Decision Pending

Apart from the demerger drama, Vedanta’s board is meeting today (August 21) to consider a second interim dividend for FY26. The record date for shareholders is set for August 27.

Read More: Brightcom Group Share Price in Focus as Q1 FY26 Results Show Strong Growth, Defence Division Announced.

Vedanta Share Price

Vedanta share price (NSE: VEDL) has moved up about 1% in the last 5 sessions but remains down 2% over the past month and year. The company’s market cap is ₹1.66 lakh crore. Its 52-week high is ₹526.95, while the low is ₹363.

Conclusion

Vedanta’s demerger plan continues to face uncertainty due to regulatory delays, compliance issues, and legal setbacks. While the company insists the move will unlock long-term value, investors remain cautious as the outcome now depends on NCLT and SEBI’s final stance.

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