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Vedanta Ltd has approved May 1 as the effective and record date for its proposed demerger, under which its aluminium, power, oil and gas, and iron ore businesses will be spun off into four separately listed entities. Shareholders will receive equity in each new entity in a 1:1 ratio. The restructuring includes the creation of Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel. The move forms part of a broader reorganisation aimed at simplifying the corporate structure and enabling independent business operations. The company had earlier extended the overall demerger timeline to the end of June, pending regulatory approvals.
Vedanta Ltd has approved May 1 as the effective date and record date for its ongoing demerger, under which its aluminium, merchant power, oil and gas, and iron ore businesses will be separated into four independently listed entities, as part of a broader restructuring initiative aimed at reorganising its business verticals. Advertisement
The decision was taken at a board meeting held earlier this week in New Delhi, with the company stating in its regulatory filing that the scheme would become effective from the specified date. The same date has also been fixed to determine shareholder eligibility for receiving equity in the newly created entities under the scheme of arrangement.
As part of the restructuring, Vedanta will demerge its operations into Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL), each of which is proposed to be listed separately. Following the implementation of the scheme, TSPL and MEL are expected to be renamed Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively, subject to regulatory approvals.
Under the approved structure, shareholders of Vedanta will receive equity shares in each of the four businesses in a 1:1 ratio. For the aluminium business, VAML will issue one fully paid-up equity share of face value INR 1 for every Vedanta share held. Similarly, TSPL will issue one equity share of face value INR 10 for each Vedanta share as part of the merchant power undertaking.
For the oil and gas business, MEL will issue one equity share of face value INR 1 for every Vedanta share held by investors. In the case of the iron ore undertaking, VISL will also issue one equity share of face value INR 1 for each existing Vedanta share.
The company further stated that non-convertible debentures associated with the aluminium business will be transferred to Vedanta Aluminium Metal Limited, with the same record date applicable for identifying eligible debenture holders. Additionally, Vedanta has approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Limited as part of the restructuring process.
Vedanta indicated that the demerger is intended to simplify its corporate structure by creating sector-focused independent businesses, allowing each vertical to pursue its strategic priorities with greater operational flexibility and alignment with investment cycles and end markets.
The company had earlier extended the overall timeline for completion of the demerger to the end of June, citing pending approvals from certain government authorities. The proposed restructuring had already seen multiple deadline revisions over the past year as regulatory clearances continued to be processed.
Vedanta Group operates across multiple geographies, including India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, Korea, Taiwan, and Japan, with a portfolio spanning critical minerals, energy transition metals, power, and technology sectors.
Source - PTI
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