Vedanta’s Demerger Clears SEBI Hurdle: Strategic Restructuring Moves Forward Amid NCLT Delay

Image Source: Business Standard

SEBI has approved Vedanta’s documentation for its proposed demerger plan, marking a key regulatory milestone. The plan aims to split Vedanta into five sector-specific entities. However, the National Company Law Tribunal (NCLT) has postponed its hearing to November 12, delaying final approval amid ongoing government scrutiny of oil and gas disclosures.

Breaking Up to Build Bigger: Vedanta’s Demerger Gains SEBI Nod, Awaits NCLT Green Light

In a major step toward corporate restructuring, the Securities and Exchange Board of India (SEBI) has formally approved the documentation for Vedanta’s demerger plan, allowing the mining and metals conglomerate to move forward with its ambitious strategy to split into five independent, sector-focused companies. The approval comes after SEBI flagged earlier concerns around disclosure and transparency, which Vedanta has since addressed.

Key Highlights of Vedanta’s Demerger Progress:

SEBI Approval Secured

SEBI’s clearance of the revised documentation marks a critical regulatory milestone.

The approval will be submitted to the National Company Law Tribunal (NCLT) as part of the ongoing hearing process.

NCLT Hearing Postponed

The NCLT hearing, originally scheduled for October 29, has been rescheduled to November 12, 2025, due to bench reconstitution.

The delay adds another layer of uncertainty to the timeline, which was initially expected to conclude by end-2025.

Revised Demerger Structure

Vedanta’s updated plan consolidates its base metals business, rather than splitting into six entities as previously proposed.

The new structure aims to improve operational focus, investor clarity, and capital allocation efficiency.

Government Concerns Persist

The Ministry of Petroleum and Natural Gas has raised objections regarding Vedanta’s handling of oil and gas assets, particularly around debt and contract disclosures.

These concerns have already pushed deadlines past September and remain a hurdle for final approval.

Market Reaction

Vedanta shares rose 2.77% to ₹516 on BSE following SEBI’s approval, reflecting investor optimism.

The stock touched an intraday high of ₹524.30, signaling confidence in the restructuring’s long-term value.

Vedanta’s demerger is one of India’s most closely watched corporate moves, with implications for sectoral specialization, shareholder returns, and regulatory precedent. While SEBI’s nod is a win, the final verdict now rests with the NCLT.

Sources: ScanX News, CNBC TV18

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