5 New Shares On One Soon: Anil Agarwal's Vedanta Demerger To Take Place in April, Says Report

Vedanta Demerger Plan: The long-awaited demerger of Vedanta is set to take place in April, marking a major milestone in its restructuring journey. As part of this move, the Anil Agarwal-led mining giant will split into five separately listed companies next month, according to a report by the Financial Times.

The demerger of Vedanta received approval from the National Company Law Tribunal in December last year. Following the split, the newly created entities are expected to be listed on the Indian stock market in April. This timeline was confirmed by Vedanta Chairman Anil Agarwal in an interaction with the Financial Times.

Vedanta Demerger Details

Post the demerger, the company will operate as Vedanta Limited, which will house its base metals business. Apart from the company, Vedanta Aluminium, Talwindo Sabo Power, Vedanta Steel and Iron, and Malco Energy will be the four other entities, reporter Reuters.

Vedanta Demerger Mcap

The combined market capitalisation of the five companies would be much higher than the Vedanta conglomerate's $27 billion, Anil Agarwal told FT in a conversation. As per the FT report, the private parent company-owned by Agarwal will retain around half of the shares in each of the new entities.

Vedanta Demerger Timeline

The plan to demerge Vedanta subsidiaries into a separate entities floated for the first time in 2023. However, the plan hit a major roadblock when the government opposed the plan amid concerns around the recovery of money owed.

Vedanta demerger received NCLT approval in December last year for execution. The company, in December, had said that the approval is subject to receipt of certain government and regulatory approvals and other stakeholder clearances. Each of the demerged entity from Vedanta will have a clear mandate, focused management teams, and dedicated capital structures.

Earlier, Chief Financial Officer Ajay Goel, in an interview to Reuters in January, said that the post merger listing is likely to be concluded by the middle of May in 2026.

Vedanta Debt Reduction Plan

Vedanta has been seeking ways to reduce its borrowings for several years, and the demerger is part of this wider plan. The company's strategy has included refinancing, asset-level restructuring and diversifying funding channels, aiming to make the balance sheet more resilient while dealing with past leverage.

The restructuring has not been straightforward. FT reported that the Indian government had opposed aspects of Vedanta's split for years, complicating the path to implementation. The company moved ahead after Vedanta overturned a legal challenge to the demerger last year, which removed a key barrier and allowed detailed execution work to proceed.