Vedanta’s Demerger Faces Fresh Hurdles; Govt Flags Risks, Next NCLT Hearing on Oct 8

Vedanta’s demerger plan hit another roadblock at the National Company Law Tribunal (NCLT) after the Ministry of Petroleum and Natural Gas objected. The ministry said Vedanta did not fully disclose loans worth ₹3,200 crore taken against hydrocarbon assets and warned that the restructuring could pose financial risks.

Loan Disclosure Issue

The ministry alleged Vedanta pledged exploration blocks, including those under the RJ Block, without required approvals. It demanded itemised disclosure of how much loan was raised, from which asset, and from which bank. While not opposing the demerger itself, the ministry asked for greater transparency.

Vedanta’s Response

Vedanta said it had already met all legal disclosure obligations under the Companies Act and added that all shareholders and creditors had approved the plan. To address risk concerns, the company highlighted its corporate guarantee and pointed out that Malco Energy’s net worth would rise from a negative ₹184 crore to a positive ₹1,700 crore post-demerger.

Sepco Withdrawal

Sepco Electric Power Construction Corporation, which earlier opposed the plan over ₹1,251 crore in EPC disputes, withdrew its objections after reaching a settlement. NCLAT also set aside the earlier order that had blocked the restructuring.

Read More: Vedanta Outbids Adani with ₹17,000 Crore for Jaiprakash Associates!

Vedanta Share Price Movement

Vedanta share price (NSE: VEDL) was trading at ₹456.45 on September 18, 2025, up 0.07% from the previous close. During the day, it opened at ₹456.15, touched a high of ₹458.95, and fell to a low of ₹452.60. The company has a market capitalisation of ₹1.78 lakh crore, a P/E ratio of 12.30, and an attractive dividend yield of 11.28%. Its 52-week range stands between ₹363.00 and ₹526.95, with a quarterly dividend payout of ₹12.87 per share.

Conclusion

Vedanta’s demerger remains under scrutiny, with the government pushing for clearer disclosures. The next NCLT hearing on October 8 will be crucial in deciding whether the plan moves forward smoothly or faces more delays.

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