Vedanta demerger: Anil Agarwal-led mining major, , on Monday, 20 April, announced that its board has decided to make its demerger scheme effective from 1 May.
The company also added that in consultation with other entities involved, the Board has fixed the same as the record date for determining the shareholders eligible to receive consideration pursuant to the scheme.
As part of the demerger, Vedanta plans to separately list four companies — Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL) and Vedanta Iron and Steel Limited (VISL).
Vedanta Demerger: Scheme of Arrangement
According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.
As consideration for demerger of aluminum undertaking, VAML shall issue and allot one fully paid-up equity share of VAML having a face value of ₹1 each for every one fully paid-up equity share of ₹1 each of Vedanta.
For the merchant power undertaking, TSPL shall issue and allot one fully paid-up equity share of TSPL having a face value of ₹10 each for every one fully paid-up equity share of Vedanta.
Similarly, for the demerger of the Oil and Gas undertaking, MEL shall issue one equity share of MEL of face value of ₹1 each for each fully paid-up share of Vedanta held by the shareholder.
And lastly, as consideration for the of the iron ore undertaking, VISL shall issue and allot one fully paid-up equity share of VISL with a face value of ₹1 for every one fully paid-up equity share of Vedanta.
Vedanta further added that non-convertible debentures forming part of the aluminium undertaking for specific ISINs will be transferred to Vedanta Aluminium Metal, with May 1, 2026, set as the record date for determining eligible debenture holders.
Furthermore, Vedanta has also approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd. According to the filing, BALCO’s turnover for the year ended 31 March, 2025 was ₹15,909 crore, constituting about 10% of the consolidated turnover of Vedanta. The net worth of BALCO was ₹12,088 crore, constituting 39% of the consolidated net worth of the company.
The agreement for the sale of shares between Vedanta and VAML is likely to be signed on or before 30 April 2026. VAML will issue its Compulsorily Convertible Debentures, which would not be less than the fair market value of BALCO, determined as per Rule 57 of Income Tax Rules, 2026, Vedanta added.
Further, following the implementation of the scheme, the names of Talwandi Sabo Power Limited and Malco Energy Limited will change to Vedanta Power Limited and Vedanta Oil and Gas Limited, respectively.
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