Vedanta Demerger: Vedanta share price rose over 3% to hit its 52-week high on Tuesday, 21 April, after the Anil Agarwal-led firm fixed May 1 as the record date for the demerger of its businesses into multiple entities.
Under the restructuring plan, will demerge its operations into four newly independent companies, including Vedanta Aluminium Metal, Vedanta Iron and Steel, Talwandi Sabo Power, and Malco Energy. Talwandi Sabo Power Limited and Malco Energy Limited will be renamed Vedanta Power and Vedanta Oil and Gas, respectively, to better reflect their sectoral focus.
“This is to inform you that the Board of Directors of the Company (“Board”), at its meeting held on April 20, 2026, as part of the ongoing reorganisation process, has inter alia, approved the following:
(i) To make the Scheme effective on May 1, 2026; and
(ii) In consultation with VAML, TSPL, MEL, and VISL, the Board has fixed May 1, 2026, as the record date for determining the shareholders eligible to receive consideration pursuant to the Scheme,” the mining company said in an exchange filing.
According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in the four businesses in a 1:1 ratio.
To recall, the National Company Law Tribunal approved the company’s proposed plan in December 2025. Vedanta had earlier outlined plans to restructure its business into a pure-play model, with the proposal receiving approval from over 99.5% of shareholders and creditors.
Vedanta demerger
In a press release, Vedanta highlighted that its proposed demerger is aimed at simplifying the group’s corporate structure by creating sector-focused, independent businesses, while opening up direct investment opportunities for global investors, including sovereign wealth funds, retail participants and strategic investors.
The company further noted that the move would enable each vertical to pursue its own strategic priorities with greater flexibility, aligning more closely with customer requirements, investment cycles and end markets. It added that the restructuring is expected to bring sharper operational focus and agility across businesses.
Vedanta stated, “It will also enhance the visibility of individual business performance, making it easier for markets to appropriately value each vertical, thereby unlocking embedded value.”
All you need to know about the demerger
Under the approved scheme, as of the record date will receive equity shares in each of the newly created entities in a 1:1 ratio.
For the business, Vedanta Aluminium Metal Limited (VAML) will issue one fully paid-up equity share with a face value of ₹1 for every one fully paid-up equity share of ₹1 held in Vedanta.
In the case of the merchant power undertaking, Talwandi Sabo Power Limited (TSPL) will issue one fully paid-up equity share with a face value of ₹10 for each Vedanta share held by investors.
For the oil and gas segment, Malco Energy Limited (MEL) will issue one equity share of face value ₹1 for every fully paid-up Vedanta share held.
Similarly, for the iron ore business, Vedanta Iron and Steel Limited (VISL) will allot one fully paid-up equity share with a face value of ₹1 for each Vedanta share.
The company also confirmed that Talwandi Sabo Power Limited and Malco Energy Limited will be renamed Vedanta Power Limited and Vedanta Oil and Gas Limited, respectively, following the implementation of the scheme.
BALCO transfer, debenture treatment and timelines
Vedanta also informed that non-convertible debentures (NCDs) linked to the aluminium undertaking for specific ISINs will be transferred to Vedanta Aluminium Metal, with May 1, 2026, fixed as the record date to determine eligible debenture holders.
Additionally, the company approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Limited. BALCO reported a turnover of ₹15,909 crore for the year ended March 31, 2025, accounting for around 10% of Vedanta’s consolidated turnover, while its net worth stood at ₹12,088 crore, contributing about 39% of the company’s consolidated net worth.
Vedanta added that the share sale agreement between Vedanta and VAML is expected to be executed on or before April 30, 2026. As part of the transaction, VAML will issue compulsorily convertible debentures, which will not be less than the fair market value of BALCO, determined in accordance with Rule 57 of the Income Tax Rules, 2026.
Vedanta share performance
The stock jumped as much as 3.1% to its 52-week high of ₹794.90 on BSE in intra-day deals.
The scrip has jumped almost 100% from its 52-week low of ₹398.85, hit in May 2025. Despite the US-Iran tensions, the stock has given positive returns. It jumped 16% in 1 month, 15% in 3 months, and 64% in 6 months. Moreover, in the last 1 year, it has advanced 89%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.