Vedanta Extends Demerger Deadline to September 30 Amid Pending Approvals

Vedanta Ltd has announced an extension of the deadline for the demerger of its businesses from 31 March 2025 to 30 September 2025. The delay has been attributed to pending approvals from government authorities and the National Company Law Tribunal (NCLT). 

The demerger aims to create independent entities for Vedanta’s aluminium, oil & gas, power, and steel businesses, which are currently part of Vedanta Ltd, the Indian arm of UK-based Vedanta Resources.

Demerger and Shareholding Structure

Following the demerger, every Vedanta shareholder, both retail and institutional, will receive one new share in each of the newly demerged companies. However, there will be no change in the overall shareholding structure.

In a recent vote among shareholders and creditors, an overwhelming 99.5% voted in favour of the demerger, highlighting strong support for the company’s restructuring plan. Vedanta’s Chairman, Anil Agarwal, has expressed confidence in the long-term benefits of the demerger, envisioning each of the four newly demerged companies to potentially grow into a $100 billion entity.

“Vedanta’s unique and irreplaceable assets, sector-leading position, strong global management, and financial discipline will ensure a stronger growth trajectory and higher returns going forward. The tremendous potential value unlock that the demerger will bring has also been captured well by many top brokerages and leading analysts,” the letter said.

Financial Growth and Market Performance

Anil Agarwal, in his letter to shareholders, emphasised the strong financial performance of Vedanta over the past five years. He noted that investments in the company at the beginning of this period would have yielded returns of 4.7 times, driven by both capital appreciation and cash dividends. He also highlighted that Vedanta has delivered a dividend yield of 81% during this period, the highest among all its peers.

“Anyone who had invested in Vedanta at the start of the past five-year period would have seen their investments multiplying over 4.7 times to date, both through capital appreciation and cash dividends returned,” the letter stated.

Vedanta, which has been listed on Indian exchanges since 1998, will retain a 63.4% stake in Hindustan Zinc (HZL), an integrated producer of zinc and silver. Additionally, the company continues to contribute significantly to the Indian economy, accounting for approximately 1.4% of the nation’s GDP.

Vedanta Share Performance 

As of April 01, 2025, at 10:05 AM, Vedanta share price was trading at ₹464.60 per share, reflecting a surge of 0.26% from its previous closing price.

Conclusion

With the demerger now set for completion by 30 September 2025, Vedanta remains focused on unlocking shareholder value and strengthening its market position. The company’s robust financial track record, strategic restructuring, and optimistic growth projections indicate a promising future for all stakeholders involved. As regulatory approvals are secured, the demerger is expected to set the stage for long-term success and enhanced market valuation.

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