Vedanta Ltd has received approval from the National Company Law Tribunal (NCLT) for its long-awaited demerger plan, marking a significant milestone in the company’s corporate restructuring. The Mumbai bench of NCLT sanctioned the scheme under company law, paving the way for Vedanta to split its diversified operations into sector-focused entities.
As per the approved plan, Vedanta will separate its operations into distinct businesses covering aluminium, oil & gas, power, and iron & steel. The parent company will retain its core metals like zinc and silver and act as an incubator for new ventures. The move is expected to help each unit focus on its specific operations and improve overall efficiency and shareholder value.
The demerger proposal had faced scrutiny, including queries from the Ministry of Petroleum and Natural Gas over asset disclosures and financial risks. However, the tribunal concluded that the scheme meets all legal and regulatory requirements, giving the green light to the corporate split.
Following the approval, Vedanta shares surged 4% to ₹405, reaching a 52-week high. Market analysts say the stock rally reflects positive investor sentiment, as the demerger is seen as a step toward unlocking value and improving transparency in the company’s diversified business portfolio.
The company is now set to implement the demerger over the coming months, subject to further regulatory and procedural approvals. Industry experts believe the move will make Vedanta’s operations more agile and competitive, while providing clearer visibility for investors.
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