Vedanta demerger: NCLT gives nod; stock climbs 3%; key details

Vedanta Ltd saw its shares climbing 3 per cent in Tuesday's trade after NCLT approved the company's proposed demerger plan. Vedanta had earlier announced restructuring of its business by moving to a pure-play model. 

Vedanta’s planned demerger into separate listed entities focused on aluminium, zinc & silver, oil & gas, power, and iron & steel to unlock shareholder value. Its demerger proposal had received support from over 99.5 per cent of shareholders and creditors.

The NCLT nod has set the stage for the listing of all five demerged entities by the end of FY '26, enabling greater strategic focus and enhanced value creation for all stakeholders. Once implemented, for every share held in Vedanta Ltd, each shareholder will receive one share in each of the four demerged companies.
 

The stock jumped 3.42 per cent to hit a high of Rs 568.85 on BSE.

Vedanta Ltd is majority-owned (56.38 per cent) by London-headquartered Vedanta Resources Ltd. Its Indian zinc business is largely housed under Hindustan Zinc Ltd, in which Vedanta held nearly 62 per cent. Other key holdings included a 51 per cent stake in Bharat Aluminium Company, 95.5 per cent in ESL Steel and 100 per cent ownership of Zinc International.

In FY25, zinc, including Hindustan Zinc and international operations, accounted for 43 per cent of Vedanta’s Rs 43,541 crore Ebitda, followed by aluminium at 41 per cent and oil and gas at 10.7 per cent. During the year, global primary aluminium demand rose 3 per cent, while zinc demand increased 2 per cent. Growth in India was stronger, with aluminium demand rising 12 per cent and zinc demand about 6 per cent. Nearly 48 per cent of Vedanta’s aluminium output and 77 per cent of its zinc production were sold in the domestic market during the fiscal year.

Recently, the Vedanta parent said global credit rating agencies Moody’s and S&P Global revised its outlook to 'Positive', citing improved operating performance, stronger earnings visibility and sustained progress on deleveraging. Both agencies reaffirmed Vedanta Resources’ existing credit ratings, while highlighting a favourable earnings outlook, an improved cost structure, deeper vertical integration and the ramp-up of new capacities, particularly in aluminium, which were expected to continue supporting earnings momentum.