Vedanta NCLT Approval: Here's how the demerged entity will look like

The Mumbai bench of the National Company Law Tribunal (NCLT), paved the way for the much awaited Vedanta demerger on Tuesday, December 16. The move will enable the creation of five independent listed entities (including the already listed Vedanta Ltd.), the Anil Agarwal-owned mining conglomerate said in a filing to the exchanges.

"With this approval and subject to receipt of certain government, regulatory approvals and other stakeholder clearances, Vedanta enters the execution phase of a transformational demerger," the filing stated.

Vedanta said that the demerger is designed to unlock long-term value for shareholders and provide investors direct exposure to high-quality, sector-leading assets, as well as simplify Vedanta's corporate structure.

The currently listed entity will be divided into five separate units:

• Vedanta Aluminium


• Vedanta Oil & Gas


• Vedanta Iron & Steel


• Vedanta Power


• and the currently listed Vedanta Ltd., which will house Hindustan Zinc and incubate future businesses. The demerger approval for the merchant power business also lies before the NCLT under a separate proceeding.

Shareholders of Vedanta Ltd. will be entitled to one equity share of every demerged entity for every one share they currently hold in the listed entity.

Here's how the demerged businesses would look like:

Vedanta Aluminium

The company will be a leading, fully-integrated producer of Aluminium, and operate with strong cost-competitiveness, a diversified product portfolio, and a growing focus on value-added and low-carbon Aluminium solutions.

Vedanta Oil & Gas

The company will function as an upstream explorer and production unit with a large onshore and offshore footprint, focused on enhancing domestic energy security.

Vedanta Power

Will emerge as one of the largest private power generators in the country and will house the existing independent power generation assets and pursue more opportunities in the domestic market.

Vedanta Iron & Steel

The unit will combine iron ore, steel and value-added ferrous operations, providing a vertically integrated platform, with scope for downstream expansion and green steel initiatives.

Vedanta Ltd.

The currently listed entity will now act as an incubator for new business ventures from within the group and will continue to act as a promoter for Hindustan Zinc, where it currently holds over 60% stake.

Shares of Vedanta ended 4.2% higher on Tuesday after the demerger approval at ₹572.5, which is a 52-week high for the stock.