Vedanta Demerger Approved by NCLT; Vedanta Share Price Jumps Over 4%

Market Performance

Vedanta's share price moved sharply higher on December 16, gaining over 4% in a single session. The rise came amid broader market activity in the Indian stock market, where stock-specific news continued to drive price action despite mixed overall cues.

The uptick in Vedanta stock price reflected growing investor focus on corporate restructuring developments rather than short-term market volatility.

Main News: NCLT Clears Vedanta Demerger Plan

Momentum in  followed reports that the National Company Law Tribunal (NCLT) has approved the long-awaited Vedanta demerger plan. The approval was granted by the Mumbai bench of the tribunal on December 16.

The tribunal’s order comes after the matter was reserved for judgment in November, following objections raised earlier during the hearings. With the NCLT now granting sanction to the scheme, a key regulatory hurdle for the Vedanta demerger has been cleared.

During earlier proceedings, the Ministry of Petroleum and Natural Gas had raised concerns around potential financial risks, disclosure of liabilities, and issues related to hydrocarbon assets. These objections had emerged as a major roadblock during the approval process.

Vedanta addressed the concerns by pointing out that the demerger plan had already been vetted and approved by the Securities and Exchange Board of India (SEBI) after necessary revisions to align with regulatory guidelines. The company further emphasised that the ministry raising objections is neither a creditor nor a stakeholder in Vedanta, and therefore does not have a direct financial or ownership interest in the company’s operations.

Company Details: Vedanta Demerger Structure

The Vedanta demerger plan was first announced in 2023, outlining a major restructuring of the group’s businesses. Under the approved scheme, Vedanta Limited will be split into five separately listed entities, each housing a distinct business vertical.

The proposed entities include:

• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Iron and Steel
• A restructured Vedanta Limited, which will retain zinc and silver operations through Hindustan Zinc and function as an incubator for new technologies and ventures

According to the company, the Vedanta Demerger plan is designed to simplify the corporate structure, reduce debt, and create independent businesses with clearer operational focus.

Why the Vedanta Demerger Matters

The approval of the demerger plan marks a significant milestone for Vedanta. By separating its diverse businesses into standalone entities, the group aims to streamline operations and improve transparency across segments.

For the Indian stock market, the move highlights how large corporate restructurings continue to influence stock prices, especially in capital-intensive sectors like metals, mining, oil, and power.

Summary

Vedanta's share price surged over 4% after reports confirmed that the NCLT has approved the Vedanta demerger plan. The clearance removes a key regulatory hurdle that had delayed the restructuring process. First announced in 2023, the demerger will split Vedanta into five independently listed entities, each focused on a specific business vertical. The development has brought Vedanta's stock price into sharp focus within broader market news and ongoing activity in the Indian stock market.