Vedanta demerger: Metal stock dips 2% ahead of creditors meeting. Details here

Vedanta demerger: Shares of metals and mining major Vedanta Limited declined in trade on Tuesday, February 18, ahead of the meeting of its shareholders and creditors to decide on the proposed demerger of the company.

According to an exchange filing, dated January 17, Vedanta had intimated the exchanges that a meeting of equity shareholders, secured creditors and unsecured creditors of Vedanta is scheduled to be held on Tuesday, February 18 in the matter of Scheme of Arrangement between Vedanta, Vedanta Aluminium Metal Ltd, Talwandi Sabo Power Ltd, Malco Energy Ltd, Vedanta Base Metals Ltd and Vedanta Iron and Steel Ltd.

The meeting has been scheduled pursuant to the order dated November 21, 2024, of the National Company Law Tribunal (NCLT), Mumbai bench, it said.

The plan needs approval from a majority representing three-fourths in debt value of the creditors present at the meeting to be implemented. If approved, it will pave the way for the company's various business verticals to become separate entities.

Originally, the company planned to split its operations into six separate businesses after the demerger: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd.

But in December, the Anil Agarwal-led company revised its demerger plan and chose to keep the base metals business under the main company.

Vedanta shares dip ahead of meeting

Vedanta share price declined as much as 2.4% in intra-day on Tuesday ahead of the meeting of its creditors. The stock opened at ₹419.50 apiece, slightly higher than the previous close of ₹415.10 but soon gave up gains to hit the day's low of ₹405.25 apiece.

However, in the last 12 months, the stock has surged 53%, pushing its market capitalisation to ₹1.59 lakh crore.

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