Vedanta shares climb as NCLAT grants interim relief for demerger plan

In a notable turn of events for Vedanta Ltd, the National Company Law Appellate Tribunal (NCLAT) has issued an interim stay on a previous ruling by the National Company Law Tribunal (NCLT), which had dismissed the company's proposed demerger plan. Following the development, Vedanta shares climbed 2.37 per cent to reach an intraday high of Rs 457.25 on Thursday, before closing 1.15 per cent higher at Rs 451.80.

The Anil Agarwal-led firm, in a regulatory filing, announced that the NCLAT stayed the NCLT Mumbai bench's March 4, 2025 order, which had rejected the company's proposed demerger scheme. The interim relief is subject to specific conditions set forth by the appellate tribunal in its order.

"We wish to inform you that the Hon'ble National Company Law Appellate Tribunal (NCLAT), has passed an order dated May 27, 2025 (uploaded on NCLAT Website on May 28, 2025), granting an interim stay on the order passed by the Hon'ble NCLT, Mumbai dated March 04, 2025, to the extent it relates to 'the rejection of the Scheme', subject to fulfilling the conditions mentioned in the Order," the company stated.

The mining conglomerate stressed that it remains fully engaged in its strategic reorganisation efforts, aiming to unlock long-term value across its stakeholder base.

Vedanta's Demerger Plan

Under its proposed demerger plan, Vedanta intends to split into five distinct listed entities. While the current Vedanta will continue to exist, four new companies are proposed: Vedanta Aluminium Metal; Vedanta Power; Vedanta Oil & Gas and Vedanta Iron and Steel.

These businesses, currently housed under Vedanta, the Indian arm of UK-based Vedanta Resources, are planned to be independently listed on Indian stock exchanges.

The company has already secured the required approvals from its creditors and shareholders to move forward with the restructuring.