Vedanta Demerger Alert: NCLT Approves Long-Awaited Entity Demerger; Share Jumps 3%

Shares of Vedanta Ltd recovered sharply from the day's low after the Mumbai bench of the National Company Law Tribunal (NCLT) approved the company's long-awaited demerger plan. The approval has lifted investor sentiment around the stock as after the announcement, Vedanta shares surged more than 3% reversing earlier losses as the market reacted positively to the regulatory green light.

Details Vedanta's Demerger Plan

The NCLT approval comes after Vedanta's shareholders and creditors gave their consent to split the diversified metals and mining major into five independent listed entities. The demerger will now allow each business vertical to pursue independently.

Under the approved scheme, every Vedanta shareholder will receive one equity share in each of the demerged entities, in addition to holding shares of the parent company.

Vedanta Demerger: List of New Entities

Vedanta has proposed the demerger of the following five key undertakings into separate companies which will operate independently

• Vedanta Aluminium Metal Ltd (VAML)
• Talwandi Sabo Power Limited (TSPL)
• Malco Energy Ltd (MEL)
• Vedanta Base Metals Ltd (VBML)
• Vedanta Iron and Steel Ltd (VISL)

Vedanta Share Price Today

After the announcement of the NCLT approval, Vedanta shares rebounded strongly and were trading at Rs. 560.15, up Rs. 10.75 or 1.96% at the time of writing. The stock has been rising in its recent sessions as it was Up 8.15% in the past five days and 21.37% over the past six months