Vedanta extends demerger timeline to March 2026, cites NCLT and govt nods as still pending

Vedanta Ltd has postponed its long-planned corporate demerger to March 31, 2026, citing incomplete approvals from the National Company Law Tribunal (NCLT) and key government authorities, the company disclosed in a regulatory filing this week.

The Anil Agarwal-led company had already shifted the original deadline from March 31, 2025, to September 30, 2025. This latest delay marks a significant pause in one of India’s most complex restructuring efforts, aimed at transforming Vedanta's diverse business units into standalone entities.

“Given that the conditions precedent in the Scheme...are in the process of being completed, the board of the company and the resulting companies...have decided to extend the timeline,” Vedanta said.

The demerger proposal, once approved, will split the company’s operations into multiple independent firms, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Ltd, though the firm has revised these plans since the initial announcement. Vedanta has opted to retain its base metals business within the parent company following earlier changes to the structure.

Deshnee Naidoo, CEO of Vedanta Resources, had previously expressed confidence in completing the demerger during the current financial year. “My focus at present is on the restructuring of the company,” Naidoo said, reaffirming her commitment to the ongoing transformation.

However, regulatory hurdles remain. The NCLT last month postponed its hearing on the demerger to October 8 after the Ministry of Petroleum and Natural Gas raised objections, flagging insufficient disclosures in the scheme. This delay has become a major sticking point in a process that requires clearance across multiple government and legal bodies.

Vedanta Ltd, a subsidiary of London-based Vedanta Resources Ltd, operates across multiple countries including India, South Africa, Namibia, Liberia, and several Asian nations. The company holds major assets in oil and gas, zinc, copper, aluminium, steel, and other critical minerals, positioning itself as a key player in the global natural resources sector.

(With inputs from PTI)