NCLT Clears Vedanta Demerger: Company to Split into Five Listed Entities

The Mumbai bench of the National Company Law Tribunal (NCLT) has cleared the path for Vedanta’s long-anticipated demerger, granting its approval on Tuesday, December 16. The decision enables the mining major to split into 5 independently listed companies, including the existing Vedanta Ltd, as per the exchange filing

“With this approval, and subject to the receipt of requisite government, regulatory, and stakeholder consents, Vedanta now moves into the execution phase of a transformational demerger,” the company said in its exchange filing.

Vedanta stated that the restructuring aims to unlock sustainable long-term value for shareholders, offer investors direct exposure to high-quality, sector-leading businesses, and simplify the group’s corporate structure.

Vedanta to Split Into 5 Companies

Under the proposed scheme, the currently listed Vedanta Ltd. will be reorganised into five distinct entities:

• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Iron & Steel
• Vedanta Power
• Vedanta Ltd., which will continue to hold Hindustan Zinc and incubate future growth businesses

The demerger of the merchant power business remains subject to approval from the NCLT under a separate proceeding.

Shareholders of Vedanta Ltd. will receive one equity share in each of the demerged entities for every share they currently hold in the listed company.

Overview of the Demerged Businesses

Vedanta Aluminium

This entity will operate as a fully integrated aluminium producer, backed by strong cost efficiency, a diversified product mix, and an increasing focus on value-added and low-carbon aluminium solutions.

Vedanta Oil & Gas

The business will function as an upstream exploration and production company with a significant onshore and offshore presence, aimed at strengthening India’s domestic energy security.

Vedanta Power

Set to become one of the country’s largest private power producers, this unit will house Vedanta’s existing independent power generation assets while pursuing new opportunities in the domestic market.

Vedanta Iron & Steel

This vertical will bring together iron ore, steel, and value-added ferrous operations, creating a vertically integrated platform with potential for downstream expansion and green steel initiatives.

Also Read: India And Oman to Sign CEPA on December 18, Oman’s First Trade Pact In 19 Years

Vedanta Ltd

Post-demerger, the listed parent will serve as an incubator for new business ventures within the group and continue as the promoter of Hindustan Zinc, where it currently holds a stake of over 60%.

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