After the demerger of ITC Hotels from its parent company ITC, another major conglomerate in the limelight is Vedanta. The much-anticipated demerger of Vedanta is now one step closer to reality after receiving approval from creditors.
Here’s a breakdown of what investors need to know: 1. Vedanta: Stock market reaction
Following the creditor approval, Vedanta share price gained nearly 2% in intraday trading on Wednesday, February 19. The company’s market capitalisation currently stands at Rs 1.66 lakh crore. Over the past year, Vedanta share price has surged 57%, although it saw a monthly decline of around 7%.
The stock hit a 52-week high of Rs 526.95 on December 16, 2024, while its 52-week low of Rs 249.50 was recorded on March 13, 2024.
ALSO READVedanta demerger: 4 things you need to know about the stock at this hour 2. Vedanta demerger: Creditor approval clears a major hurdle
On February 18, Vedanta held a meeting with its creditors and shareholders, as directed by the National Company Law Tribunal (NCLT) Mumbai. The proposal needed support from at least 75% of creditors by debt value to move forward.
As per reports, the company received a 83% approval from its creditors, with a step now set to proceed with the demerger process.
3. Vedanta demerger: Key details
At the initial phase, Vedanta had planned to split its business into six entities but later revised it to five.
After the demerger, existing shareholders will receive one equity share in each of the five newly listed entities for every share they currently hold in Vedanta.
The new entities are include-
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Steel and Ferrous Materials
- Vedanta (the existing entity)
4. Vedanta demerger: Regulatory approvals and timeline
Vedanta’s board initially approved the demerger in September 2023. The company has already secured No Objection Certificates (NOCs) from both the headline indices- BSE and NSE.
As per reports, with this latest development, it is expected the demerger process to be completed by the end of Q1FY26.
ALSO READThis Madhusudan Kela pick is down 24% in 2025, Here’s why… 5. Vedanta’s Q3FY25 performance
Vedanta on January 31 announced its financial results for Q3FY25 (October-December 2024).
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