Vedanta Share Price Dips 2% Ahead of Key Demerger Meeting

Vedanta share price dropped 2.4% on Tuesday, February 18, ahead of an important meeting with shareholders and creditors to discuss the company’s demerger plan. The stock opened at ₹419.50, slightly higher than its previous close of ₹415.10, but later fell to ₹405.25 during intra-day trade.

Meeting to Decide on Vedanta’s Demerger

As per a filing on January 17, Vedanta informed the stock exchanges that a meeting of equity shareholders, secured creditors, and unsecured creditors would be held on February 18. This meeting, scheduled under the National Company Law Tribunal (NCLT) Mumbai’s order from November 21, 2024, will determine the approval of the proposed demerger.

For the demerger to move forward, at least 75% of creditors (by debt value) attending the meeting must approve the plan. If cleared, Vedanta’s different business divisions will become independent entities.

Changes in the Demerger Plan

Initially, Vedanta planned to separate into 6 businesses: Aluminium, Oil & Gas, Power, Steel & Ferrous Materials, Base Metals, and Vedanta Ltd. However, in December, the company decided to retain its base metals business under the main company instead of making it a separate entity.

Vedanta’s Stock Performance

Despite the recent decline, Vedanta’s stock has risen 53% in the past 12 months, increasing its market valuation to ₹1.59 lakh crore.

About Vedanta Ltd

Vedanta is a diversified natural resources company involved in mining, processing, and selling minerals and oil & gas. The company produces zinc, lead, silver, copper, aluminium, iron ore, and oil & gas. It operates in multiple countries, including India, South Africa, Namibia, Ireland, Liberia, and the UAE. India contributes about 65% of Vedanta’s total revenue, followed by Malaysia (9%), China (3%), the UAE (1%), and other regions making up 22%.

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