New Delhi, 22/01/2025: Vedanta Limited is moving ahead with plans to restructure and split into four separate companies instead of the five it originally planned. This change follows a decision by the National Company Law Tribunal (NCLT) in November 2024, which led to the exclusion of its base metals business from the demerger. Vedanta had initially planned to separate its businesses in aluminium, oil and gas, power, steel and ferrous materials, and base metals into different listed companies. But the new plan will focus on four companies: Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited. Vedanta Limited itself will remain as the fifth company.
The restructuring is part of Vedanta’s strategy to better manage its finances and debts. A meeting with shareholders and creditors will take place on February 18, 2025, to finalise the changes. Shareholders will receive one share in each of the new companies for every share they own in Vedanta Limited. The company says the demerger will be a simple split.
Vedanta will continue to hold a 65% stake in Hindustan Zinc Ltd and its new businesses in stainless steel and semiconductors. The demerger is expected to be completed within 12-15 months.
