Vedanta Share Price Falls 4% Amid Government Objections on Demerger Plans

Shares of Vedanta slipped sharply in stock market today, tumbling nearly 4% during intraday trading on Wednesday, September 17. The decline comes amid reports that the government has raised fresh objections to the Anil Agarwal-led company’s proposed demerger plans during a hearing at the National Company Law Tribunal (NCLT).

Investors reacted quickly as concerns about financial risks and disclosure norms surfaced, prompting a brief selloff in the metals and mining major.

Market Performance: Vedanta Sees Intraday Volatility

• Intraday low: ₹443.90 (down 3.8%)
• Afternoon trading: ₹454 (down 1.5%) around 2:40 pm
• 2025 YTD movement: modest rise of 2%
• Two-year gain: 92%
• One-year gain: 1%

The stock’s sudden dip underlines investor caution around the demerger, even as Vedanta remains a key large-cap player in metals and mining.

Government Objections: What’s Behind the Selloff

Reports from CNBC TV-18 highlighted several areas of concern raised by the government:

• Financial risks: Potential issues after the demerger.
• Disclosure gaps: Insufficient details of liabilities.
• Asset misrepresentation: Possible misreporting of hydrocarbon assets.
• Regulatory concerns: Alleged violations of Sebi’s disclosure norms.
• Liquidation risk: Worries that the demerged entity, Malco Energy, could face liquidation, complicating recovery of government dues.

These objections added pressure on investors, causing the sharp intraday movement in Vedanta’s share price.

Vedanta Demerger Plans

The Vedanta Group aims to split its Indian operations into five separate, publicly listed companies:

1. Vedanta Aluminium
2. Vedanta Oil & Gas
3. Vedanta Power
4. Vedanta Iron & Steel
5. Restructured Vedanta Ltd – holding zinc and silver businesses (via Hindustan Zinc) and serving as a hub for new technologies.

The demerger is designed to:

• Unlock shareholder value
• Give investors sector-specific investment flexibility
• Allow each business unit to focus on independent growth strategies

Vedanta has stated that all creditors and stakeholders have approved the plan. The company has also offered corporate guarantees to safeguard government dues.

Vedanta Share Price Reaction

Despite the company’s assurances, shares faced selling pressure in stock market today, reflecting cautious sentiment among traders.

• Sharp intraday decline to ₹443.90
• Partial recovery later in the day to ₹454
• Market watchers noted the stock’s modest rise this year and strong two-year performance

Summary

The Vedanta share price drop highlights how government scrutiny can impact market sentiment, even for well-established companies. While the demerger is intended to unlock value and streamline operations, regulatory objections continue to stir investor caution.

Investors tracking Vedanta closely in stock market today will be watching how the company navigates these concerns and whether further clarification or amendments are made to its demerger proposal.