Vedanta Wins NCLT Approval to Split Into Five Listed Companies as Shares Hit Year High

Overview

• India’s National Company Law Tribunal cleared Vedanta’s demerger into Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and a restructured Vedanta Limited.
• Under the approved scheme, shareholders will receive one share in each of the four new entities for every Vedanta share held, while the parent retains its stake in Hindustan Zinc.
• Vedanta’s stock has risen for 13 straight sessions, touched a 52-week high of Rs 607.65, and is up about 35% year to date on the BSE.
• Chairman Anil Agarwal outlined plans for a 3 million tonne green aluminium facility and the deployment of 25 rigs in oil and gas targeting up to 500,000 barrels per day, while staying bullish on silver.
• Further clearances and asset transfers are pending with a hearing scheduled on January 7, and the company aims to complete the demerger by March.