Vedanta share price pares intraday loss after getting shareholders’ nod for demerger

Vedanta share price pared intraday losses to trade higher after the mining conglomerate received approval from its shareholders and creditors for its proposed demerged plan. Vedanta shares gained as much as 0.96% to ₹427.50 apiece on the BSE.

The shareholders, secured creditors, and unsecured creditors of Vedanta have approved the proposed demerger scheme in the meetings convened on Tuesday, February 18.

Vedanta demerger was approved by 99.99% of its shareholders, 99.59% of its secured creditors, and 99.95% of its unsecured creditors, who voted in favour of the demerger, a regulatory filing by Vedanta Ltd on February 20 showed.

Vedanta Demerger Scheme

In 2023, the Anil Agarwal-led mining major announced plans for demerger. Vedanta demerger scheme involves the separation of Vedanta Ltd into five independent, sector-specific entities — Vedanta Aluminium Metal Ltd, Talwandi Sabo Power Ltd, Malco Energy Ltd, and Vedanta Iron and Steel Ltd.

According to Vedanta’s demerger scheme, every Vedanta shareholder will receive 1 additional share in each of the 4 newly demerged companies on the completion of the demerger process.

Vedanta Aluminium is one of the world’s largest producers of aluminium; while Vedanta Oil & Gas is India’s largest private-sector crude oil producer. Vedanta Power is one of India’s largest generators of power and Vedanta Iron and Steel is a company with a highly scalable ferrous portfolio.

Vedanta Ltd will include the world’s second largest integrated zinc producer & third largest silver producer – in Hindustan Zinc.

Vedanta Ltd. will also act as an incubator for new businesses, including Vedanta’s technology verticals. 

At 10:50 AM, Vedanta shares were trading 0.58% higher at ₹425.85 apiece on the BSE, with a market capitalisation of more than ₹1.66 lakh crore.

(With inputs from PTI)

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