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Informist, Wednesday, Oct. 29, 2025

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Wednesday said it will start hearing afresh Vedanta's plea for the proposed demerger of the company and the government's objection to it from Nov. 12 after the tribunal constituted a new bench. On Sept. 30, Vedanta had said it had extended the deadline to implement its demerger scheme by six months to Mar. 31, citing delay in approvals from the Mumbai bench of the National Company Law Tribunal and other government authorities.

 

The Securities and Exchange Board of India, which had earlier issued a warning letter to Vedanta about its demerger proposal, has now approved the demerger scheme, the regulator told the tribunal. SEBI said it was not happy with Vedanta modifying its demerger scheme after the market regulator's approval. 

 

Vedanta's demerger scheme involves the demerger of the company's aluminium, oil and gas, and iron ore and steel businesses into separate companies - Vedanta Aluminium Metal Ltd., Malco Energy Ltd., and Vedanta Iron and Steel Ltd. The company had filed a separate application with the National Company Law Tribunal for demerging the power business into Talwindo Sabo Power Ltd. According to Vedanta, the proposed demerger "is a strategic step to unlock long-term value by creating sector-focused, pure-play businesses with independent management teams."

 

The government had opposed the merger, saying the company had concealed and failed to disclose key details. The government also flagged concerns over inflated revenue and concealed liabilities of the company. In its response, Vedanta had said that it will issue a corporate guarantee in favour of the petroleum and natural gas ministry "once the (demerger) scheme becomes effective". The corporate guarantee will be in place if Vedanta's subsidiary Malco Energy is unable to meet or satisfy any potential contractual liability, if any, towards the petroleum and natural gas ministry under the Production Sharing Contracts and Revenue Sharing Contracts related to oil and gas blocks, Vedanta had said.

 

Wednesday, shares of Vedanta ended 2.7% higher at INR 516.20 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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