Vedanta share price surges over 4% as NCLT approves demerger plan

The stock gained 4.2% to settle at ₹572.50 on the NSE.

Vedanta had announced the demerger of the currently listed entity into six different entities back in September 2023. However, later it revised the plan.

The company added that this approval marks a key milestone in the company's transformation into focused, sector-leading companies. Vedanta will now proceed with the necessary steps to implement the scheme.

NCLT decision: What happened on December 16

The National Company Law Tribunal (NCLT) on Tuesday approved the Vedanta demerger plan, paving the way for the splitting of the metals-to-oil conglomerate into sector-specific entities across aluminium, oil and gas, power, and iron and steel.

"The sanction to the company scheme is granted," the Mumbai bench of the tribunal, comprising Charanjeet Singh Gulati and Nilesh Sharma, said.

NCLT had reserved the order after hearing the matter on November 12, PTI reported.

The Ministry of Petroleum and Natural Gas (MoPnG) had cited concerns over the potential financial risks post-demerger of Vedanta and alleged misrepresentation of hydrocarbon assets and insufficient disclosure of liabilities by the metal and mining conglomerate.

The ministry had told NCLT that it also wanted disclosures on the concealment of facts that include showing the exploration blocks as Vedanta's assets and details of the loan taken on the basis of those assets, among others.

In response, Vedanta had stated that it had already complied with all the required norms.

Vedanta Demerger plan: A quick recap

In February 2025, Vedanta received approval from its shareholders and creditors for its proposal to demerge the company into five independent, sector-specific companies.

The demerger was approved by 99.99% of shareholders, 99.59% of the secured creditors, and 99.95% of unsecured creditors of Vedanta Limited who voted in favour of the demerger, as per the stock exchange filing made by the company.

According to Vedanta's demerger scheme, every Vedanta shareholder will receive one additional share in each of the four newly demerged companies on the completion of the demerger process.

The five companies are Vedanta Aluminium, one of the world's largest producers of aluminium; Vedanta Oil & Gas, India's largest private-sector crude oil producer; Vedanta Power, one of India's largest generators of power; Vedanta Iron and Steel – a company with a highly scalable ferrous portfolio; and Vedanta Limited, which will include the world's second largest integrated zinc producer & third largest silver producer, Hindustan Zinc.

Vedanta Ltd. will also act as an incubator for new businesses, including Vedanta's technology verticals.

As per Vedanta's demerger scheme, the demerger will create five independent companies of a global scale focused on the mining, production and/or supply of aluminium, iron ore, copper, oil & gas, and on the generation and distribution of power.

The company had said that the demerger will enable investors to separately hold investments in businesses with different investment characteristics and market potential, thereby allowing them to select investments which best suit their investment strategies and risk profiles.

As per Vedanta's demerger scheme, it will also enable focused and sharper capital market access (debt and equity), thereby unlocking the value of the demerged entities.

Vedanta Limited currently operates a diversified portfolio with interests in metals, mining, oil and gas, power generation, and other emerging sectors.