LIC-Backed Large-Cap Mining Giant Announces Demerger Record and Effective Dates; Details Share Swap Ratios

On Tuesday, Indian markets traded on a positive note, with the Nifty 50 rising to 24,517.90, up 0.63 per cent from the previous close. Amid this, Vedanta share price opened higher at Rs 793 but declined during the session to trade at Rs 774.90, down marginally by around 0.01 per cent from the previous close of Rs 775. The stock movement follows the company’s announcement regarding its ongoing corporate restructuring.

Vedanta Approves Demerger Record Date and Effective Date

Vedanta Board has approved May 1, 2026, as the effective date for its Composite Scheme of Arrangement, along with fixing the same date as the record date to determine eligible shareholders.

Under the approved scheme, shareholders will receive equity shares in four resulting entities in accordance with defined swap ratios. For the aluminium business, Vedanta Aluminium Metal Ltd (VAML) will issue one equity share of Re 1 for every one equity share of Vedanta Ltd. For the merchant power business, Talwandi Sabo Power Ltd (TSPL) will issue one equity share of Rs 10 for every one equity share held. Similarly, for the oil and gas undertaking, Malco Energy Ltd (MEL) will issue one equity share of Re 1 for each share held, and for the iron ore business, Vedanta Iron and Steel Ltd (VISL) will issue one equity share of Re 1 for every one equity share of the company.

Reorganisation and Business Transfer Details

As part of the restructuring, Vedanta has also approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to VAML. BALCO reported a turnover of Rs 15,909 crore for FY25, contributing around 10 per cent to the company’s consolidated turnover, while its net worth stood at Rs 12,088 crore, accounting for 39 per cent of consolidated net worth.

VAML, a wholly owned subsidiary, will issue compulsorily convertible debentures (CCDs) not less than the fair market value of BALCO as consideration for the transfer, in an arm’s length transaction.

Additionally, certain non-convertible debentures forming part of the aluminium undertaking will be transferred to VAML. Following the effectiveness of the scheme, TSPL and MEL will be renamed Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively, subject to regulatory approvals.

About Vedanta

Vedanta Ltd is a diversified natural resources, energy, and technology company with operations across zinc, aluminium, oil and gas, iron ore, steel, copper, power, and other segments. Incorporated in 1975, the company has a global presence with operations across India, Africa, the Middle East, and Asia-Pacific regions, supported by multiple subsidiaries.

Share your views in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.