Tribunal clears Vedanta’s 5-way demerger, paving way for March 2026 split
By Cygnus | 16 Dec 2025
The National Company Law Tribunal (NCLT) has approved Vedanta Ltd’s proposal to split its conglomerate into five separate listed entities, removing the final major regulatory hurdle for one of India’s largest corporate restructurings.
The decision allows mining billionaire Anil Agarwal’s group to proceed with its ambitious plan to decouple its aluminum, oil and gas, power, and steel businesses from the parent entity. The restructuring, first proposed in 2023, had faced delays due to objections from the government over potential complications in recovering statutory dues.
With the tribunal’s green light, Vedanta stated it is targeting the completion of the demerger by March 31, 2026.
Unlocking Value Through Simplification Under the approved scheme, for every share of Vedanta Ltd held, shareholders will receive one share of each of the four newly listed companies. The post-demerger structure will result in five independent listed entities:
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Steel and Ferrous Materials
- Vedanta Ltd (Remaining entity housing Zinc, Copper, and Semiconductor/Display businesses).
The move is designed to simplify the group’s complex structure, allowing investors to value each asset class independently rather than applying a “conglomerate discount.”
Debt and Market Reaction Vedanta shares rallied nearly 4% on Tuesday following the announcement. Analysts view the split as a positive step for debt management. As of March 2025, the company’s consolidated gross debt stood at approximately ₹73,853 crore ($9 billion).
By creating standalone entities, the group hopes to attract sector-specific investors—such as ESG-focused funds for its metals business or yield-seekers for its power assets—improving capital allocation and transparency across the portfolio.
Brief Summary
An Indian tribunal has approved Vedanta’s plan to demerge into five separate listed companies, targeting completion by March 2026. The restructuring aims to unlock shareholder value by separating the aluminum, oil, power, and steel businesses into independent entities. Shares rose 4% on the news, which is seen as a way to improve transparency and manage the group’s $9 billion debt pile.
Frequently Asked Questions (FAQs)
Q1: What did the tribunal decide?
The NCLT approved Vedanta’s scheme of arrangement to split its businesses. This overrides previous objections from creditors and the government, allowing the company to proceed with the split.
Q2: How will the split work for shareholders?
Existing shareholders of Vedanta Ltd will receive one share in each of the four new listed companies for every one share they currently hold in Vedanta Ltd. They will also retain their original share in the parent company.
Q3: What are the five new companies?
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Steel and Ferrous Materials
- Vedanta Limited (retaining Zinc, Copper, and Semiconductors).
Q4: Why is Vedanta doing this?
The goal is “value unlocking.” Conglomerates often trade at a discount because their businesses are too diverse. By splitting them up, Vedanta hopes the combined market cap of the five separate firms will be higher than the current single entity.
Q5: When will the new shares list?
The company is targeting the completion of the process by March 31, 2026. Listing of the new entities on the BSE and NSE would follow shortly after that date.
