Vedanta is again in the spotlight, and this time, it is about a long-awaited corporate restructuring. The company’s much-anticipated demerger is in the final stages, with approval from the National Company Law Tribunal (NCLT) expected within the next 4-6 weeks, according to Vedanta founder Anil Agarwal’s recent interview with CNBCTV18.
If you are an investor or just curious about what is next for Vedanta, here are five key things to keep in mind this week.
What’s the timeline for Vedanta’s demerger?
Vedanta is expecting approval from the National Company Law Tribunal (NCLT) within the next four to six weeks, as per founder Anil Agarwal’s recent interview with CNBCTV18. However, he refrained from specifying an exact timeline for when the entire process will be completed.
The company had originally announced the demerger plan in September 2023, and regulatory clearances are now in the final stages. If all goes as planned, the restructuring should be completed in early 2025.
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Vedanta will split into five independent companies, each focusing on specific sectors:
- Vedanta Aluminium Metal
- Talwandi Sabo Power
- Malco Energy
- Vedanta Iron and Steel
- Vedanta (which will remain as the parent entity)
What is in it for shareholders?
For every one share of Vedanta, you’ll receive one share in each of the newly formed companies once the demerger is completed.
“I envision that each of the four newly demerged companies has the potential to grow into a $100 billion company. If you look at where we are headed as a global economy and the demand for such products, these companies and their products are the need of the hour,” Agarwal said in an exchange filing on March 17.
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Agarwal is bullish on growth prospects, stating that each of these demerged companies has the potential to become a $100 billion business, tapping into rising global demand for their products.
Has the demerger received approval?
The demerger plan has received support from stakeholders. In a meeting held on February 18, 2025, the proposal secured 99.99% approval from shareholders and 83% backing from creditors.
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