Vedanta’s Demerger Plan Receives NCLT Approval
Vedanta Limited’s demerger Plan, which was first announced in 2023, has been approved by National Company Law Tribunal (NCLT). Mumbai bench of the tribunal granted this approval on 16th December, 2025.
Vedanta Addresses Ministry’s Concerns During Earlier Hearings
NCLT’s approval comes following objections raised earlier by Ministry of Petroleum and Natural Gas during the hearings. As per Vedanta’s press release, dated 16th December, 2025, the said Ministry had raised concerns pointing towards potential financial risks, disclosure of liabilities, and issues related to company’s hydrocarbon assets.
Vedanta, in response to these concerns, emphasized that the company has acquired essential approvals for the demerger plan from Securities and Exchange Board of India (SEBI). Furthermore, Vedanta argued that the Ministry raising objections is not a stakeholder or a creditor to the company; hence, the Ministry lacks the direct financial or ownership interest in the business operations.
With the approval secured and subject to other regulatory approvals and stakeholder clearance, Vedanta will execute its demerger plan, which will result in five separate entities.
Vedanta to Demerge into Five Independent Entities, Focusing on Distinct Businesses
Vedanta’s plan entails demerging into five independent entities, where each will focus on a different segment. The five entities will be Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and Vedanta Limited.
Among the newly formed entities, Vedanta Aluminium will be a producer of Aluminium with a focus on low-carbon aluminium solutions. Further, Vedanta Oil & Gas will act as an upstream exploration and production company, which means its core operations will include finding, drilling, and extracting crude oil and natural gas from underground reservoirs.
Vedanta Power will target growth opportunities in the country’s evolving energy sector, while operating with its existing independent power generation assets. Whereas, Vedanta Iron & Steel will provide a vertically integrated platform, i.e., mining and manufacturing will be combined and provided on a single platform.
Meanwhile, the residual entity, Vedanta Ltd., will continue to act as the parent company and will hold its stake in Hindustan Zinc Ltd. Additionally, the company will act as an incubator for new businesses.
Vedanta’s Share Price Surges Following NCLT’s Approval
Company’s press release stated that following the reports of NCLT’s approval, its share price surged over 4%. Also, Mr. Anil Agarwal, Chairman, Vedanta Ltd., said, “Each of these entities has the potential to grow manifold, attract strategic investment, and deliver superior value as these sectors are witnessing double-digit growth.”
Company’s strategic rationale for this demerger highlighted that each of the five entities will operate with greater efficiency and gain independent access to capital. This demerger will also help the company to cater to its customers’ needs more closely and enable investors to evaluate each of these business segments separately.
About Vedanta Ltd.: Vedanta Ltd. is a major Indian minerals and mining company that deals in ferrous and non-ferrous metals, as well as oil and gas. The company has assets located in India, Namibia, South Africa and Liberia.