Vedanta Demerger: Anil Agarwal’s stock surges 4% after NCLT approves demerger

Synopsis: The shares of the metal and mining companies jumped right after the most awaited decision for the company, the NCLT approval to demerge its present company into 5 separate entities. The company had announced its demerger in September 2023, for which approval was granted today after the government’s due recovery dispute. 

This company, which is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas, had its shares in the spotlight after receiving a nod for the most-awaited decision for the company, which is the NCLT approval of the demerger of its 6 business segments. 

With the market cap of Rs 2,22,618 crore, the shares of Vedanta Ltd had hit its intraday high at Rs 571.50 , gaining almost 4 percent compared to its previous day closing price of Rs 550; today’s high also marks its 52-week high. The shares have given a return of more than 287% over the last 5 years. 

About the NCLT approval. 

Vedanta Ltd’s shares bounced back from the day’s lows after the Mumbai bench of the NCLT approved the company’s long-awaited demerger plan, bringing much-needed clarity to a process that has been in the works for several quarters. The approval eased investor concerns around regulatory uncertainty, explaining the recovery in the stock even as the market continues to assess the longer-term impact of the move.

The demerger was first announced in September 2023, with Vedanta planning to split the existing listed company into 5 separate entities. The original proposal covered businesses such as aluminium, power, iron and steel, base metals and energy, with the aim of creating more focused companies and improving transparency. A few months later, Vedanta decided not to proceed with the demerger of its base metals business, slightly revising the structure but retaining the broader intent of the exercise.

Market participants view the approval as an important milestone, though expectations around value creation remain measured. The decision was something the Street had been waiting for. The overall impact could still be neutral to positive, especially if Vedanta follows up with the sale of some non-core assets.

From a legal perspective, experts point out that the approval is a clear green signal, unless the order is challenged. Sanjay Asher of Crawford Bayley & Co. noted that any appeal would move the matter to the NCLAT, which could extend timelines. Until then, the NCLT’s decision marks a key step forward in Vedanta’s restructuring journey and brings the company closer to executing its long-term plan. The company will now proceed with the necessary steps to implement the scheme.    

Financials and more. 

The revenue from operations is at Rs 39,868 crore in Q2 FY26 versus Rs 37,634 crore in Q2 FY25, which is a growth of about 6 per cent. However, the net profit has decreased from Rs 5,603 crore in Q2 FY25 to Rs 3,479 crore in Q2 FY26, which is a fall of about 38 per cent.

Vedanta Limited is a diversified global natural resources company with operations spanning aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductors, and glass. The company operates world-class assets across India, South Africa, Namibia, and Liberia, supported by a low-cost and diversified resource base.

 Vedanta focuses on disciplined capital allocation, strong cash flow generation, operational efficiency, and sustainability, positioning itself as a key supplier of primary materials and a long-term partner in India’s industrial and economic development.

Written by Leon Mendonca. 

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