Vedanta Share Price Falls Nearly 3% Amid Demerger Setback and Supreme Court Ruling

Market Performance

Vedanta share price came under pressure on Wednesday after reports of multiple setbacks to its demerger plan.

• The stock fell as much as 2.56% to ₹438.55 apiece on the BSE.
• By 1:05 PM, shares were trading 2.40% lower at ₹439.30 apiece.

Setback in Demerger Process

According to a report, the National Company Law Tribunal (NCLT) has deferred the hearing on Vedanta’s proposed demerger to September 17. This came after the central government raised serious objections to the plan.

The objections included:

• Alleged concealment of key details
• Inflated revenue figures
• Concealed liabilities that may affect recovery of dues

Additionally, the SEBI flagged Vedanta for modifying its demerger scheme after receiving a No-Objection Certificate (NoC) from regulators and stock exchanges. SEBI termed this a serious breach of its master circular and issued an administrative warning to the company.

Supreme Court Ruling on Power Project

In a separate development, the Supreme Court (SC) dismissed Vedanta Group’s plea seeking additional compensation for its Talwandi Sabo Power Project in Punjab.

Key highlights:

• Vedanta had challenged the withdrawal of ‘deemed export’ benefits.
• The company sought higher compensation, but the SC upheld the Appellate Tribunal for Electricity’s (APTEL) order.
• The ruling confirmed that Talwandi Sabo was never legitimately entitled to such benefits.

This decision effectively ends the company’s chances of receiving additional financial relief from the project.

Company Details

Vedanta had earlier faced another hurdle when the NCLT rejected the proposed demerger of Talwandi Sabo Power Ltd, a subsidiary of the group. With the SC ruling, the company’s legal and financial options have tightened further.

Summary

• Vedanta share price dropped nearly 3% on reports of demerger hurdles.
• NCLT deferred the demerger hearing to September 17 after government objections.
• SEBI issued a warning to Vedanta over modifications in the scheme.
• The Supreme Court dismissed the company’s compensation plea for its Talwandi Sabo project.

Overall, regulatory and legal challenges have weighed heavily on Vedanta share price, leading to sustained pressure in Wednesday’s trade.