NCLT Approves Vedanta Demerger Plan - All You Need To Know

Vedanta Demerger: The National Company Law Tribunal (NCLT) Mumbai bench has given its nod to Vedanta demerger plan on Tuesday, December 16, after which the conglomerate's shares jumped 3.5% on NSE.

The demerger plan opposed earlier by the Ministry of Petroleum and Natural Gas included four companies of the Mumbai-headquartered group such as Vedanta Iron and Steel, Vedanta Aluminium Metal, Talwandi Sabo Power, and Malco Energy. 4.20 %)

The Vedanta shares on NSE closed 4.20 % higher at Rs 572.50 apiece.

"We welcome order pronounced today by NCLT sanctioning the company’s demerger scheme, the approval marks key milestone in company’s transformation into focused, sector-leading companies. Company will now proceed with the necessary steps to implement the scheme," said Vedanta in an official statement.

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Initially, the company had outlined a plan to split into six independent entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.

The demerger was proposed to enhance operational capability, improve management focus, and unlock shareholder value.

NCLT Mumbai reserved judgment in Vedanta petition seeking nod for demerger on November 12.

Government had opposed plea for Vedanta demerger and said it has pending claims of Rs 16,700 crore, however, Vedanta argued that the ministry is a sectoral regulator, and is neither a creditor or stakeholder in the company thereby lacks the locus standi to oppose the scheme before the tribunal.

In March 2025, the deadline for completing the demerger was extended to September 30, 2025, due to pending approvals from the NCLT and other government bodies.