Vedanta share price jumps 4% as NCLT approves demerger plan

Vedanta demerger: Shares of Anil Agarwal-led metal and mining major Vedanta Limited surged over 4% on Tuesday, December 16, after the National Company Law Tribunal (NCLT) approved the demerger plan.

“The sanction to the company scheme is granted,” the Mumbai bench of the NCLT said on Tuesday, according to a Mint report.

At its last hearing in November, the Mumbai-bench on NLCT had reserved its order amid opposition from the Ministry of Petroleum and Natural Gas.

During the hearing, the Ministry of Petroleum and Natural Gas cited its concerns over potential financial risks after the Vedanta demerger, misrepresentation of the country’s hydrocarbon assets, and insufficient disclosure of liabilities. The ministry's objections in the tribunal have led to a major roadblock for the demerger.

Vedanta Demerger Plans

Back in 2023, the Vedanta Group had announced its plans to demerger the company into five separately-listed entities housing various businesses of the company — Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and a restructured Vedanta Ltd, which will hold the zinc and silver businesses (via Hindustan Zinc) and serve as an incubator for new technologies and ventures.

The company has said that the proposed demerger is aimed at reducing the company’s debt with a focus on creating independent businesses and providing value for stakeholders.

Vedanta had countered the ministry’s objections, saying that it had already received market regulator Securities and Exchange Board of India's (Sebi) approval after revising its demerger scheme in line with regulatory requirements. Moreover, it argued that even if the ministry was a sectoral regulator, it is neither a creditor nor a stakeholder in the company.

Value Unlocking For Vedanta Investors?

According to a Nuvama Research report, dated November 20, the demerger could help in unlocking value by improving the valuation of companies such as aluminium, steel and power. It had estimated its fair value of ₹686 (ceteris paribus) shall be enhanced by ₹84/share once the demerger comes into effect.

The brokerage had pencilled in the completion of Vedanta's demerger process in Q4 FY26 in case of a favourable outcome in the December meeting.

Vedanta share price hit the day's high of ₹573 per share. The stock finally settled at ₹569.35, up 3.52%. So far in 2025, the metal stock is up 28% while in a year, it has gained 11%.

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