Vedanta is back in the news, this time for its highly anticipated corporate restructuring, which is nearing completion. The company’s demerger, a significant move in its evolution, is expected to gain approval from the National Company Law Tribunal (NCLT) in the coming 4-6 weeks. Anil Agarwal, Vedanta’s founder, shared this insight during a recent conversation with CNBCTV18.
For those keen on Vedanta’s future, let’s break down five crucial points that you should be aware of this week.
Timeline for Vedanta’s Demerger
Vedanta is optimistic about receiving the green light from the National Company Law Tribunal (NCLT) within the next month or so. Although Agarwal did not provide a precise completion date, the company initially unveiled its demerger plan back in September 2023. Now, as regulatory approvals are in the final stages, the restructuring is projected to wrap up by early 2025.
Understanding Vedanta’s Demerger: What’s Happening?
The demerger will lead to Vedanta splitting into five distinct companies, each concentrating on specific sectors:
- Vedanta Aluminium Metal
- Talwandi Sabo Power
- Malco Energy
- Vedanta Iron and Steel
- Vedanta (as the parent company)
This strategic move aims to enhance operational focus and efficiency across its various sectors.
Benefits for Shareholders
Once the demerger is finalized, shareholders can expect a favorable outcome. For each share currently held in Vedanta, investors will receive one share in each of the newly established entities.
Agarwal expressed optimism, stating, “I believe each of the four demerged companies holds the potential to evolve into a $100 billion enterprise. Given the trajectory of the global economy and the increasing demand for our products, these companies are positioned perfectly to meet market needs.” This forward-thinking perspective highlights the promising growth potential of these new entities.
Status of the Demerger Approval
The demerger proposal has garnered significant support. During a meeting on February 18, 2025, shareholders expressed overwhelming approval, with 99.99% backing the plan, alongside 83% of creditor support. This solid backing reflects confidence in Vedanta’s vision.
Current Performance of Vedanta’s Stock
Vedanta’s stock has shown a robust performance lately. Currently priced at Rs 472 per share, it witnessed a 2.5% increase during intraday trading. Over the last week, the stock has appreciated by 6%, with a 9% rise in the past month. Year-to-date, the stock has climbed 6%, and impressively, it has delivered a 76% return over the previous year.
As Vedanta approaches this pivotal transition, investors and market watchers alike are keen to see how these developments will shape the company’s future. For ongoing insights into market trends and investment opportunities, stay tuned!
