Vedanta demerger suffers another delay; Here's why the stock fell after the initial spike

The much awaited demerger of Anil Agarwal-owned mining conglomerate Vedanta Ltd. has suffered yet another delay.

The National Company Law Tribunal (NCLT) bench that was hearing the demerger case, has now been reconstituted. This newly reconstituted bench will now hear Vedanta's plea and the government's objections to the demerger scheme of arrangement all over again.

Vedanta, which has already pushed back the effective date of the demerger multiple times, has sought rehearing of the case to begin at the earliest.

In response to that, the NCLT will now begin to re-hear the case starting November 12.

Earlier, market regulator Securities and Exchange Board of India (SEBI) had given a warning letter to the company for the demerger, but the regulator has now approved the revised scheme.

SEBI has now placed on record it's stance, clarifying that it was not happy with Vedanta's modification of the scheme of merger after approval. Vedanta also submitted that SEBI gave them a wrap on the knuckles, but has approved the modified plan.

Shares of Vedanta had climbed as much as 4% after reports first emerged of SEBI granting approval to the demerger after the initial warning. However, with the hearing delayed further, the stock has now come off the highs of the day, currently trading 1.5% higher at ₹509.35. The stock began trading above the ₹500 mark for the first time in 2025 last week.