Vedanta’s 5-Way Demerger: Five New Entities to Emerge Post Split

Vedanta Limited has received approval from its shareholders and creditors to demerge into 5 independent, sector specific listed companies. The move aims to unlock value by separating its core businesses aluminium, oil & gas, power, and steel while retaining Hindustan Zinc under Vedanta.

Shareholder and Creditor Approval

The company announced that 99.99% of shareholders, 99.59% of secured creditors, and 99.95% of unsecured creditors voted in favour of the demerger plan. This strong approval clears the path for one of India’s largest corporate restructuring moves.

Shareholding Structure Post Demerger

Every Vedanta shareholder will receive one additional share in each of the four newly demerged companies. Vedanta Resources Ltd., the London-based parent, will remain the ultimate holding company. Vedanta Limited will continue to hold the zinc business and incubate new ventures.

The Five Entities Post Demerger

1. Vedanta Aluminium

The aluminium business will now operate as a dedicated entity, enabling focused strategies in one of the fastest-growing industrial metals markets.

2. Vedanta Oil & Gas

This entity will consolidate Vedanta’s upstream oil and gas operations, with an emphasis on exploration and production.

3. Vedanta Power

The power business, previously part of Vedanta, will become an independent listed company, focusing on energy generation.

4. Vedanta Iron and Steel

This vertical will manage the company’s iron ore and steel operations, enabling sharper operational and financial visibility.

5. Vedanta Limited

The restructured Vedanta Limited will continue to hold Hindustan Zinc, including its revenue from zinc and silver, and act as an incubator for new business opportunities.

Regulatory Delays and Fresh Hurdles

However, Vedanta’s ambitious restructuring has run into fresh delays, with the National Company Law Tribunal (NCLT) in Mumbai adjourning its hearing to September 17. 

The postponement follows objections from the Ministry of Petroleum and Natural Gas (MoPNG), which expressed concerns that the breakup could hinder recovery of dues tied to production and revenue-sharing agreements in Vedanta’s oil and gas business.

Read More: Dividends and Bonus Issues This Week (Aug 25–29): HDFC Bank, Karur Vysya, Vedanta and More.

Conclusion

Vedanta’s 5-way demerger marks a significant step in reorganising its diverse operations into focused, standalone companies. While the restructuring offers clearer business visibility, its long-term impact will depend on execution and market response.

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