Vedanta Limited’s plan to restructure its business through a major demerger encountered a regulatory roadblock during a hearing at the National Company Law Tribunal (NCLT) in Mumbai. While key financial regulators have provided their approvals, the Ministry of Petroleum and Natural Gas has objected to the scheme and sought additional time to present its views.
During the NCLT hearing held on Wednesday, July 2, the Ministry of Petroleum and Natural Gas raised objections to the proposed demerger and requested more time to submit its observations. According to news reports, the matter was partly heard and has been adjourned to August 20, 2025, for further proceedings.
At the same hearing, the Securities and Exchange Board of India (SEBI) informed the tribunal that it had no further comments on the demerger and is in the process of verifying Vedanta’s compliance with all applicable SEBI norms. Additionally, legal counsel from the National Stock Exchange (NSE) confirmed that the exchange has issued a no-objection certificate for the proposed scheme.
As per a news report, Vedanta stated, “Vedanta Limited confirms that the Demerger Scheme was listed for hearing today before the Hon’ble NCLT, Mumbai Bench. After hearing arguments of the Counsels, the matter was partly heard and has been adjourned to August 20, 2025, for further hearing.”
The company further added, “Vedanta remains fully committed to its strategic reorganisation plan, which received overwhelming support from the shareholders and creditors of the company in February this year. Both the Shareholders and Creditors of Vedanta voted in excess of 99.5% in favour of the demerger.”
Vedanta first announced the demerger in September 2023, with the intention to split its business into four independently listed companies focused on aluminium, oil and gas, power, and base metals. The company believes this move will lead to increased operational efficiency, better management focus, and greater value creation for shareholders.
In March 2025, the deadline for completion of the demerger was extended to September 30, 2025, due to pending approvals from NCLT and other government bodies. The company also emphasised that the restructuring would allow faster and more focused decision-making while aligning with India’s broader goals of economic growth and energy transition.
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As of 3 July 2025, at 11:50 AM, Vedanta share price is trading at ₹463.50 per share, reflecting a decline of 1.19% from the previous closing price.
While Vedanta’s demerger has secured major regulatory clearances, the objection raised by the Ministry of Petroleum and Natural Gas has temporarily delayed progress. The company remains optimistic and committed as the matter awaits its next hearing on August 20, 2025.
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Published on: Jul 3, 2025, 12:52 PM IST
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